Accounts Receivable (AR) and Accounts Payable (AP) are two sides of the same coin. AR is a company’s promise to receive money for goods or services, while AP is its promise to pay for goods or services provided by other parties. Put simply, it’s what a business owes (AP) versus what it will be paid (AR). To keep track of everything properly, businesses must keep accurate records of accounts receivable and payable. This process can be daunting, but with careful attention to detail, companies can manage their finances effectively, keeping their accounts organized and in balance.