difference between account payable and account receivable

Learn the key differences between accounts payable and accounts receivable to understand how they impact your business's financial health. Accounts payable (AP) refers to the money your company owes to suppliers, while accounts receivable (AR) represents money owed to your business by customers. Understanding these two financial terms is crucial for managing cash flow, ensuring timely payments, and maintaining accurate financial records. This guide will help you differentiate between AP and AR, so you can optimize your accounting processes and improve financial management