Current Accounts Payable
What are Current Accounts Payable?
Current Accounts Payable is an accounting entry that represents a company’s obligation to pay off a short-term debt to its creditors. Electricity, telephone, and broadband bills fall under this category as do advertising, travel, entertainment, and office supplies. The bills get generated towards the end of the month or a particular billing period. It means that the service provider gave you some service and sends the bill which needs to be paid by a certain date or else you will default.
How to calculate Current Accounts Payable?
bill 1 + bill 2 + ... + bill n = ($) Current Accounts Payable
Tracking your accounts payable for a certain period of time will help you plan your budget and make sure you can keep all your commitments for the period.
Current Accounts Payable is always monitored in relation to Current Accounts Receivable. This way you can get an idea of remaining cashflow for the period.