{"id":14581,"date":"2026-07-02T07:15:38","date_gmt":"2026-07-02T11:15:38","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=14581"},"modified":"2026-07-02T07:15:39","modified_gmt":"2026-07-02T11:15:39","slug":"accounts-payable-debit-or-credit","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-debit-or-credit\/","title":{"rendered":"Is accounts payable a debit or credit?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tIs accounts payable a debit or credit?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tYour company\u2019s accounts payable ledger keeps track of your credit purchases. But what are credits and debits in business accounting and why is it important for you to understand this? Let\u2019s break down how these concepts fit together.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-02T07:15:38-04:00\">July 2, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Is accounts payable a debit or credit?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-debit-or-credit\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Accounts payable is a credit, not a debit. It&#8217;s recorded as a credit because it represents a liability\u2014money your business owes to suppliers or vendors for goods and services received on credit.<\/p>\n\n\n\n<p>Under double-entry bookkeeping, liabilities increase with credits and decrease with debits. <\/p>\n\n\n\n<p>So when a bill arrives and you record it in accounts payable, you credit the account to reflect the amount now owed.<\/p>\n\n\n\n<p>If you&#8217;re newer to bookkeeping, debits and credits can take a little getting used to. <\/p>\n\n\n\n<p>But once you understand whether accounts payable is a debit or a credit, and why, you&#8217;ll be able to track what your business owes with confidence and avoid common posting errors.<\/p>\n\n\n\n<p>Below, we cover the basics of debits and credits, how <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable<\/a> fits into double-entry bookkeeping, and walk through practical Canadian examples.<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key Takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>Accounts payable is a liability account that increases with credits and decreases with debits, helping keep your books balanced under double-entry bookkeeping. <\/li>\n\n\n\n<li>Record a credit to accounts payable when you receive a supplier invoice, then debit accounts payable when you make a full or partial payment. <\/li>\n\n\n\n<li>Understanding how accounts payable differs from accounts receivable, bills payable, and loans payable helps ensure accurate financial reporting and avoid posting errors.<\/li>\n\n\n\n<li>Automating accounts payable reduces manual work, improves accuracy, streamlines approvals, and provides better visibility into cash flow and outstanding supplier obligations.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 class=\"wp-block-heading has-h-3-font-size\" id=\"h-here-s-what-we-cover\"><strong>Here\u2019s what we cover:<\/strong><\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-are-debits-and-credits-in-accounting\" data-level=\"2\">What are debits and credits in accounting?<\/a><\/li><li><a href=\"#h-debits-and-credits-in-double-entry-accounting\" data-level=\"2\">Debits and credits in double-entry accounting<\/a><\/li><li><a href=\"#h-how-debits-and-credits-work-for-accounts-payable\" data-level=\"2\">How debits and credits work for accounts payable<\/a><\/li><li><a href=\"#h-accounts-payable-vs-accounts-receivable-debit-or-credit\" data-level=\"2\">Accounts payable vs. accounts receivable: Debit or credit<\/a><\/li><li><a href=\"#h-accounts-payable-vs-bills-payable-and-loans-payable\" data-level=\"2\">Accounts payable vs. bills payable and loans payable<\/a><\/li><li><a href=\"#h-recording-accounts-payable-with-examples\" data-level=\"2\">Recording accounts payable, with examples<\/a><\/li><li><a href=\"#h-automating-accounts-payable-with-software\" data-level=\"2\">Automating accounts payable with software<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-debits-and-credits-in-accounting\">What are debits and credits in accounting?<\/h2>\n\n\n\n<p>Debits and credits are both accounting entries that show how a transaction moves value between accounts. When a new payable is recorded, the account is credited to reflect the increased liability. When a payment is made, the account is debited, reducing what&#8217;s owed.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/what-are-debits-and-credits\/\" target=\"_blank\" rel=\"noreferrer noopener\">Debits and credits<\/a> are neutral accounting entries\u2014neither is inherently positive or negative.<\/p>\n\n\n\n<p>A new payable, for instance, often reflects a strategic use of credit: you&#8217;re investing in inventory, services, or equipment that will help generate revenue, not simply taking on debt for its own sake.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-debits\">What are debits?<\/h3>\n\n\n\n<p>A debit increases asset and expense accounts, and decreases liability, equity, and revenue accounts. In short, a debit adds to what your business owns or records as a cost, while reducing what it owes.<\/p>\n\n\n\n<p>For accounts payable specifically, a debit occurs when you pay down what you owe. <\/p>\n\n\n\n<p>If you pay $500 toward a $1,000 invoice, you&#8217;d debit accounts payable by $500, reducing the recorded liability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-credits\">What are credits?<\/h3>\n\n\n\n<p>A credit is the reverse of a debit: it increases liability, equity, and revenue accounts, while decreasing asset and expense accounts. When a supplier invoice arrives, you credit accounts payable, increasing what you owe.<\/p>\n\n\n\n<p>For example, a $1,000 invoice for office supplies increases accounts payable by $1,000, while the office supplies expense account is debited by the same amount to reflect the cost incurred.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-debits-and-credits-in-double-entry-accounting\">Debits and credits in double-entry accounting<\/h2>\n\n\n\n<p>Double-entry accounting is the cornerstone of modern bookkeeping.<\/p>\n\n\n\n<p>Every transaction affects at least two accounts\u2014one debited, one credited\u2014keeping the accounting equation<strong> (assets = liabilities + equity) <\/strong>in balance at all times.<\/p>\n\n\n\n<p>A debit increases asset accounts and decreases liability and equity accounts; a credit does the opposite. <\/p>\n\n\n\n<p>Total debits must always equal total credits across a transaction, which is what keeps the books balanced and provides a built-in system of checks.<\/p>\n\n\n\n<p>The table below summarizes how debits and credits affect each account type:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Account type<\/strong><\/td><td><strong>Increases with<\/strong><\/td><td><strong>Decreases with<\/strong><\/td><\/tr><tr><td>Assets<\/td><td>Debit<\/td><td>Credit<\/td><\/tr><tr><td>Expenses<\/td><td>Debit<\/td><td>Credit<\/td><\/tr><tr><td><strong>Liabilities (including accounts payable)<\/strong><\/td><td>Credit<\/td><td>Debit<\/td><\/tr><tr><td>Equity<\/td><td>Credit<\/td><td>Debit<\/td><\/tr><tr><td>Revenue<\/td><td>Credit<\/td><td>Debit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-debits-and-credits-work-for-accounts-payable\">How debits and credits work for accounts payable<\/h2>\n\n\n\n<p>Because accounts payable is a liability, it follows the same rule as any other liability account: it increases with a credit and decreases with a debit.<\/p>\n\n\n\n<p>In practice, this means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When your business receives a supplier bill, the amount owed goes up, recorded as a credit to accounts payable.<\/li>\n\n\n\n<li>When your business pays that bill, the liability goes down, recorded as a debit to accounts payable.<\/li>\n<\/ul>\n\n\n\n<p>This is why accounts payable normally carries a credit balance in the general ledger and shows up as a credit on the trial balance.<\/p>\n\n\n\n<p>A debit to accounts payable doesn&#8217;t increase what you owe\u2014it reflects a payment that reduces the liability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-is-accounts-payable-usually-a-credit-balance\">Why is accounts payable usually a credit balance?<\/h3>\n\n\n\n<p>Accounts payable usually carries a credit balance because it represents an obligation to pay suppliers. As a liability account, it increases with credits and decreases with debits under standard double-entry rules.<\/p>\n\n\n\n<p>When your business receives goods or services on credit, the transaction is recorded as a credit to accounts payable, increasing the liability owed. <\/p>\n\n\n\n<p>That credit balance remains in place until the invoice is paid, at which point a debit to accounts payable clears the amount owed. balance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-does-accounts-payable-increase-with-debit\">Does accounts payable increase with debit?<\/h3>\n\n\n\n<p>No, accounts payable does not increase with a debit. A debit to accounts payable decreases the balance, reflecting a payment that&#8217;s been made, whether in full or in part.<\/p>\n\n\n\n<p>Accounts payable increases with a credit, which reflects a new obligation being created when goods or services are received but not yet paid for.<\/p>\n\n\n\n<p>Keeping this distinction clear helps prevent posting errors that can distort your reported liabilities and cash flow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-is-accounts-payable-a-credit-in-trial-balance\">Why is accounts payable a credit in trial balance?<\/h3>\n\n\n\n<p>On the trial balance, accounts payable appears as a credit because it&#8217;s a liability account that normally carries a credit balance in the general ledger.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-a-trial-balance\/\" target=\"_blank\" rel=\"noreferrer noopener\">trial balance<\/a> summarizes every ledger account at a given point in time, listing debit balances in one column and credit balances in another, to confirm that total debits equal total credits.<\/p>\n\n\n\n<p>This check helps catch errors before financial statements are prepared.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-accounts-payable-vs-accounts-receivable-debit-or-credit\">Accounts payable vs. accounts receivable: Debit or credit<\/h2>\n\n\n\n<p>Accounts payable is a credit and a liability, representing money your business owes to suppliers. Accounts receivable tracks money owed to your business by customers and, because it represents future income, is classified as an asset.<\/p>\n\n\n\n<p id=\"block-9cea4f98-81ef-4943-a020-2cc3db4e6315\">In this way, <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-vs-accounts-receivable-a-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable and accounts receivable serve opposite functions<\/a>.<\/p>\n\n\n\n<p>Each transaction still follows double-entry bookkeeping, with one account debited and another credited, but the two ledgers serve opposite functions.<\/p>\n\n\n\n<p>Accounts receivable normally carries a debit balance, since assets increase with debits\u2014when a customer owes you money, you record a debit to accounts receivable to track the expected payment.<\/p>\n\n\n\n<p>When your business pays a supplier invoice, you debit accounts payable to reduce the liability; when a customer pays you, you credit accounts receivable to reduce the asset.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Account<\/strong>&nbsp;<\/td><td><strong>What it tracks<\/strong>&nbsp;<\/td><td><strong>Account type<\/strong>&nbsp;<\/td><td><strong>Increases with<\/strong>&nbsp;<\/td><td><strong>Decreases with<\/strong>&nbsp;<\/td><\/tr><tr><td><strong>Accounts payable<\/strong>&nbsp;<\/td><td>The money your business owes to suppliers&nbsp;<\/td><td>Liability&nbsp;<\/td><td>Credit&nbsp;<\/td><td>Debit&nbsp;<\/td><\/tr><tr><td><strong>Accounts receivable<\/strong>&nbsp;<\/td><td>The money customers owe your business&nbsp;<\/td><td>Asset&nbsp;<\/td><td>Debit&nbsp;<\/td><td>Credit&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-accounts-payable-vs-bills-payable-and-loans-payable\">Accounts payable vs. bills payable and loans payable<\/h2>\n\n\n\n<p>Alongside accounts payable, two other liability accounts represent amounts owed: bills payable and loans payable.<\/p>\n\n\n\n<p>All three differ in how formal the underlying agreement is.<\/p>\n\n\n\n<p>Bills payable are formal written promises, usually backed by a promissory note, committing your business to pay a specific amount by a set date.<\/p>\n\n\n\n<p>They&#8217;re recorded in a separate liability account and help forecast future payment obligations.<\/p>\n\n\n\n<p>Loans payable refers to formal loans from a financial institution, typically with a defined repayment schedule and interest, under a legally binding agreement.<\/p>\n\n\n\n<p>When a loan is approved, cash is debited (an asset increases) and loans payable is credited (a liability increases). When the loan is repaid, loans payable is debited and cash is credited.<\/p>\n\n\n\n<p>Accounts payable differs from both in that it arises from standard, typically short-term, supplier transactions, documented by invoices (requests for payment) or purchase orders (authorizations to purchase) rather than formal loan agreements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-bills-payable-and-loans-payable-debits-or-credits\">Are bills payable and loans payable debits or credits?<\/h3>\n\n\n\n<p>Like accounts payable, both bills payable and loans payable are liability accounts. So, like accounts payable, they increase with credits and decrease with debits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-recording-accounts-payable-with-examples\">Recording accounts payable, with examples<\/h2>\n\n\n\n<p>Recording accounts payable through the full payment cycle uses double-entry bookkeeping throughout, with offsetting debit and credit entries keeping the general ledger balanced.<\/p>\n\n\n\n<p>Goods or services received are credited to accounts payable; once the invoice is paid, a debit to accounts payable clears the liability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-initial-recording-when-receiving-goods-or-services\">Initial recording (when receiving goods or services)<\/h3>\n\n\n\n<p>When an invoice arrives, you credit accounts payable (increasing the liability) and debit the relevant expense or asset account (increasing the expense or asset).<\/p>\n\n\n\n<p>Example: your business receives a $500 invoice for marketing services.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit \u201cMarketing expenses\u201d by $500 (increasing the expense).<\/li>\n\n\n\n<li>Credit \u201cAccounts payable\u201d by $500 (increasing the liability).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-payment-recording-when-paying-a-supplier-invoice\">Payment recording (when paying a supplier invoice)<\/h3>\n\n\n\n<p>When that invoice is paid, the transaction is again recorded using double-entry bookkeeping so the accounts stay balanced.<\/p>\n\n\n\n<p>Suppose your business pays the full $500:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit \u201cAccounts payable\u201d by $500.<\/li>\n\n\n\n<li>Credit \u201cCash\u201d or \u201cBank account\u201d by $500.<\/li>\n<\/ul>\n\n\n\n<p>This is a debit accounts payable entry, reducing the liability recorded in the general ledger.<\/p>\n\n\n\n<p>In practice, invoices aren&#8217;t always paid in full at once.<\/p>\n\n\n\n<p>If only part of an invoice is settled, the same principle applies: the business records a debit to accounts payable for the amount paid, reducing the liability, while the remaining balance stays outstanding in the accounts payable ledger until the supplier is paid in full.<\/p>\n\n\n\n<p>Even though cash is leaving the business, a credit is used on the cash side, because reductions in asset accounts are recorded as credits.<\/p>\n\n\n\n<p>To summarize, debits increase assets and decrease liabilities, while credits decrease assets and increase liabilities. Recorded correctly, the books stay balanced and the payment is accurately reflected in your financial records.<\/p>\n\n\n\n<p>Beyond bookkeeping accuracy, paying down accounts payable has a direct effect on day-to-day operations.<\/p>\n\n\n\n<p>Each payment reduces outstanding liabilities and affects short-term cash flow and working capital.<\/p>\n\n\n\n<p>Many businesses track their accounts payable turnover ratio, which measures how frequently a company pays its suppliers over a given period, to manage payment timing, maintain healthy supplier relationships, and keep cash flow stable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-automating-accounts-payable-with-software\">Automating accounts payable with software<\/h2>\n\n\n\n<p>Manual accounts payable processes can be slow and error prone. Typically, they rely on paper-based approvals and large volumes of manual data entry, with little real-time visibility into outstanding obligations.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounts payable software<\/a> addresses these issues by automating much of the workload, extracting key details during invoice processing, routing invoices through pre-assigned approval workflows, and scheduling payments automatically.<\/p>\n\n\n\n<p>This reduces both time spent and the risk of error.<\/p>\n\n\n\n<p>Software also makes it easier to track and analyze spending more broadly, which supports healthy cash flow, smarter inventory management, and stronger profitability over time.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-continuity\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness continuity\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/payment-processing\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tpayment processing\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-14628 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-small-business business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-1214x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-03T08:23:28-04:00\">July 3, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-vs-notes-payable\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tNotes payable vs accounts payable: Differences and examples\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tAre you part of your business\u2019s accounting team? Understanding the difference between notes payable and accounts payable is key to effectively managing what your business owes. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-14634 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-business-strategy tag-financial-insights tag-investments business_type-small-business business_type-medium-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/net-asset-value\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0465-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0465-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0465-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0465-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-03T08:20:26-04:00\">July 3, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNAV meaning: net asset value formula and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-14617 post type-post status-publish format-standard has-post-thumbnail hentry category-daily-money category-money-matters tag-accounting-101 tag-business-continuity tag-small-business tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/order-to-cash-process-otc-o2c\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1070958794-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1070958794-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1070958794-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1070958794-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-03T04:03:01-04:00\">July 3, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is the order to cash process?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-14612 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-money-matters tag-accounting-101 tag-erp tag-inventory-management tag-supply-chain-management business_type-small-business business_type-medium-business industry-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-order-fulfillment\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0826-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0826-684x384.jpeg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0826-768x512.jpeg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0826-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-02T09:22:22-04:00\">July 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is the order fulfillment process?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-14596 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-money-matters tag-accounting-101 tag-erp tag-inventory-management tag-manufacturing tag-supply-chain-management business_type-small-business business_type-medium-business industry-distribution\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-order-processing\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0713-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0713-684x384.jpeg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0713-768x512.jpeg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_GB-Trucking-Logistics_0713-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-02T07:35:25-04:00\">July 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">21 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tOrder processing explained: Steps, systems, and best practices\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Your company\u2019s accounts payable ledger keeps track of your credit purchases. But what are credits and debits in business accounting and why is it important for you to understand this? Let\u2019s break down how these concepts fit together.<\/p>\n","protected":false},"author":1774,"featured_media":11853,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[8,7],"tags":[162,165,224,271,197,267],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["post-14581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-money","category-money-matters","tag-accounting-101","tag-bookkeeping","tag-business-continuity","tag-cash-flow","tag-payment-processing","tag-small-business","business_type-small-business"],"sage_meta":{"region":"en-ca","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0169.jpg","imagine_tags":{"35":"accounting software","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1774"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=14581"}],"version-history":[{"count":5,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14581\/revisions"}],"predecessor-version":[{"id":14602,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14581\/revisions\/14602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/11853"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=14581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=14581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=14581"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=14581"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=14581"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=14581"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=14581"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=14581"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=14581"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=14581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}