Accounts Receivable Payable is the process of tracking money that a company expects to receive from its customers and money it owes to creditors. Companies track these transactions closely, as Accounts Receivable Payable serves as an early warning system for potential problems with cash flow. Careful management of Accounts Receivable Payable can help ensure that a business has enough funds to cover its operating expenses in the short-term and its long-term liabilities. An effective Accounts Receivable Payable process allows companies to plan ahead, budget efficiently, and maximize profitability.