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what is the difference between accounts payable and accounts receivable

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what is the difference between accounts payable and accounts receivable

Understanding the difference between accounts payable and accounts receivable is crucial for effective financial management. Accounts payable (AP) represents the money your business owes to suppliers and creditors for goods or services purchased on credit, while accounts receivable (AR) refers to the money your business is owed by customers for products or services provided. AP is a liability, and AR is an asset. Learn how to manage both to maintain healthy cash flow, optimize your finances, and ensure accurate financial reporting for your business.
By: OBG Outsourcing
24-Feb-2025 01:23 pm
Business & Services
User Website : https://obgoutsourcing.com/blog/understanding-the-difference-between-accounts-payable-and-accounts-receivable-a-comprehensive-guide-by-obg-outsourcing-inc-

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