{"id":14628,"date":"2026-07-03T08:23:28","date_gmt":"2026-07-03T12:23:28","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=14628"},"modified":"2026-07-03T08:23:30","modified_gmt":"2026-07-03T12:23:30","slug":"accounts-payable-vs-notes-payable","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-vs-notes-payable\/","title":{"rendered":"Notes payable vs accounts payable: Differences and examples"},"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\tNotes payable vs accounts payable: Differences and examples\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\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\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=\"2026-07-03T08:23:28-04:00\">July 3, 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=\"Notes payable vs accounts payable: Differences and examples\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-vs-notes-payable\/\"\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>Managing your business finances involves handling various liabilities, including notes payable and accounts payable.&nbsp;<\/p>\n\n\n\n<p>While both represent obligations your company owes to creditors, <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable<\/a> and notes payable are different in many ways. These distinct characteristics affect financial reporting, cash flow management, and decision-making.\u00a0<\/p>\n\n\n\n<p>This guide explains the meaning, key differences, and examples of notes payable vs accounts payable to help your accounting team manage them effectively.\u00a0<\/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 covers short-term supplier credit, while notes payable are formal, interest-bearing loans used for larger financing needs with structured repayment terms. <\/li>\n\n\n\n<li>Both accounts are liabilities that affect cash flow, but accounts payable is always current, while notes payable can be current or long-term. <\/li>\n\n\n\n<li>Managing both effectively helps maintain healthy cash flow, avoid late fees, strengthen supplier and lender relationships, and improve financial reporting. <\/li>\n\n\n\n<li>AP automation software streamlines invoice processing, tracks loan repayments, reduces manual errors, and provides real-time visibility into liabilities and cash flow.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 class=\"wp-block-heading\" 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-notes-payable\" data-level=\"2\">What are notes payable?<\/a><\/li><li><a href=\"#h-what-are-accounts-payable\" data-level=\"2\">What are accounts payable?<\/a><\/li><li><a href=\"#h-what-is-the-difference-between-accounts-payable-and-notes-payable\" data-level=\"2\">What is the difference between accounts payable and notes payable?<\/a><\/li><li><a href=\"#h-what-are-the-similarities-between-notes-payable-and-accounts-payable\" data-level=\"2\">What are the similarities between notes payable and accounts payable?<\/a><\/li><li><a href=\"#h-notes-payable-versus-accounts-payable-examples\" data-level=\"2\">Notes payable versus accounts payable examples<\/a><\/li><li><a href=\"#h-what-is-the-role-of-accounts-payable-and-notes-payable-in-a-p2p-process\" data-level=\"2\">What is the role of accounts payable and notes payable in a P2P process?<\/a><\/li><li><a href=\"#h-streamline-accounts-payable-and-notes-payable-with-the-right-software\" data-level=\"2\">Streamline accounts payable and notes payable with the right software<\/a><\/li><li><a href=\"#h-notes-payable-vs-accounts-payable-faqs\" data-level=\"2\">Notes payable vs accounts payable FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-notes-payable\">What are notes payable?<\/h2>\n\n\n\n<p>Notes payable are formal loan agreements in which a business borrows money and promises to repay it with interest by a designated future date.&nbsp;<\/p>\n\n\n\n<p>Unlike short-term invoices that require quick payment, notes payable involve structured repayment terms that can extend over months or years.&nbsp;<\/p>\n\n\n\n<p>Your business might use notes payable in situations such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taking out a loan from a bank for expansion.&nbsp;<\/li>\n\n\n\n<li>Financing large equipment purchases instead of paying up front.&nbsp;<\/li>\n\n\n\n<li>Negotiating extended payment terms with a supplier by formalizing the debts into a promissory note.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-components-of-notes-payable\">Components of notes payable<\/h3>\n\n\n\n<p>A notes payable agreement typically includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Principal amount:<\/strong> the total borrowed sum.<\/li>\n\n\n\n<li><strong>Interest rate: <\/strong>the percentage charged on the borrowed amount.<\/li>\n\n\n\n<li><strong>Maturity date: <\/strong>the final repayment deadline.<\/li>\n\n\n\n<li><strong>Payment schedule: <\/strong>monthly, quarterly, or lump-sum repayment terms.<\/li>\n\n\n\n<li><strong>Lender details:<\/strong> information about the creditor providing the loan.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-are-notes-payable-important\">Why are notes payable important?<\/h3>\n\n\n\n<p>Notes payable are essential for business financing because they provide access to the funds needed for growth, expansion, and major purchases.&nbsp;<\/p>\n\n\n\n<p>Your accounting team can manage cash flow more strategically with notes payable, meaning that the business can have enough resources to invest while spreading payments over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-accounts-payable\">What are accounts payable?<\/h2>\n\n\n\n<p>Accounts payable are short-term financial obligations to suppliers or vendors for goods and services purchased on credit.&nbsp;<\/p>\n\n\n\n<p>These debts are typically due <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/invoice-payment-terms\/\" target=\"_blank\" rel=\"noreferrer noopener\">within 30 to 90 days<\/a>, and unlike notes payable, they do not accrue interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-is-accounts-payable-management-important\">Why is accounts payable management important?<\/h3>\n\n\n\n<p>Managing Accounts Payable (AP) is crucial for maintaining healthy cash flow and strong supplier relationships.\u00a0<\/p>\n\n\n\n<p>A well-organized AP process ensures that your business:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintains a positive cash flow by managing payment timing efficiently.&nbsp;<\/li>\n\n\n\n<li>Avoids late fees and preserves creditworthiness with suppliers.&nbsp;<\/li>\n\n\n\n<li>Earns better supplier terms and potential discounts.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Optimizing accounts payable helps your team stay on top of obligations, reduce errors, and improve financial stability, all of which contribute to a more efficient and profitable business.&nbsp;business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-difference-between-accounts-payable-and-notes-payable\">What is the difference between accounts payable and notes payable?<\/h2>\n\n\n\n<p>The main difference between accounts payable and notes payable is that accounts payable represent short-term credit from suppliers with no interest, while notes payable are longer-term, interest-bearing loan agreements.\u00a0<\/p>\n\n\n\n<p>Accounts payable are used for day-to-day purchases; notes payable are used for larger financing arrangements.&nbsp;<\/p>\n\n\n\n<p>While both represent liabilities, they serve different purposes, impact cash flow differently, and require distinct accounting treatments.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-features-of-accounts-payable-versus-notes-payable\">Features of accounts payable versus notes payable<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>&nbsp;<\/strong><\/td><td><strong>Notes payable<\/strong><\/td><td><strong>Accounts payable<\/strong><\/td><\/tr><tr><td><strong>Type of debt<\/strong><\/td><td>Formal loan agreement<\/td><td>Short-term vendor credit<\/td><\/tr><tr><td><strong>Repayment term<\/strong><\/td><td>Medium to long term<\/td><td>Short term (30 to 90 days)<\/td><\/tr><tr><td><strong>Interest<\/strong><\/td><td>Usually includes interest<\/td><td>No interest charged<\/td><\/tr><tr><td><strong>Legal agreement<\/strong><\/td><td>Formal promissory note<\/td><td>No formal contract<\/td><\/tr><tr><td><strong>Uses<\/strong><\/td><td>Loans, financing, structured payment agreements<\/td><td>Regular business purchases from suppliers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-notes-payable-and-accounts-payable-are-recorded\">How notes payable and accounts payable are recorded<\/h3>\n\n\n\n<p>Both notes payable and accounts payable are classified as liabilities, but they are recorded differently in financial statements.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Notes payable<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recorded as a long-term or short-term liability, depending on the repayment period.<\/li>\n\n\n\n<li>Include an interest expense entry.<\/li>\n\n\n\n<li>Require a journal entry for principal and interest payments.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Accounts payable<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-journal-entry\/\" target=\"_blank\" rel=\"noreferrer noopener\">Recorded<\/a> as a short-term liability on the balance sheet.<\/li>\n\n\n\n<li>No interest is recorded, since it represents trade credit.<\/li>\n\n\n\n<li>Reduced when payments are made to suppliers.<\/li>\n<\/ul>\n\n\n\n<p>Tracking and categorizing these liabilities correctly helps your team deliver accurate reporting and better cash flow management.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-similarities-between-notes-payable-and-accounts-payable\">What are the similarities between notes payable and accounts payable?<\/h2>\n\n\n\n<p id=\"h-what-are-the-similarities-between-notes-payable-and-accounts-payable-despite-key-differences-between-accounts-payable-and-notes-payable-the-two-share-several-important-characteristics\">Despite key differences between accounts payable and notes payable, the two share several important characteristics:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-liabilities\">Liabilities<\/h3>\n\n\n\n<p>Both are obligations that your business must settle in the future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-payment-terms\">Payment terms<\/h3>\n\n\n\n<p>Both require your team to make timely payments, though notes payable have structured interest-bearing schedules, while accounts payable involves short-term trade credits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash-flow-effects\">Cash flow effects<\/h3>\n\n\n\n<p>Both accounts payable and notes payable have a direct impact on your business&#8217;s cash flow. Managing them well helps maintain liquidity and avoid financial strain.Balance sheet reporting&nbsp;<\/p>\n\n\n\n<p>Both are recorded on your business balance sheet:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accounts payable are usually listed under current liabilities.&nbsp;<\/li>\n\n\n\n<li>Notes payable can appear under either current or long-term liabilities, depending on the repayment timeline.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-notes-payable-versus-accounts-payable-examples\">Notes payable versus accounts payable examples<\/h2>\n\n\n\n<p>Here are two practical examples to illustrate how notes payable vs. accounts payable work in a real business scenario:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">When might you use notes payable?<\/h3>\n\n\n\n<p>Imagine you are a restaurant owner who needs to renovate the dining area and purchase new kitchen equipment.\u00a0<\/p>\n\n\n\n<p>To finance the upgrade, you borrow $50,000 from a bank under a five-year repayment plan with a 5% interest rate.&nbsp;<\/p>\n\n\n\n<p>This loan is classified as a note payable and recorded as a liability on your balance sheet.&nbsp;<\/p>\n\n\n\n<p>Your restaurant then makes scheduled monthly payments, covering both principal and interest, until the loan is fully repaid.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">When might you use accounts payable?<\/h3>\n\n\n\n<p>Let&#8217;s say you are part of a marketing agency that orders $10,000 worth of office supplies, including laptops, printers, and stationery, from a vendor.\u00a0<\/p>\n\n\n\n<p>The vendor offers Net-60 payment terms, meaning your agency has 60 days to pay.&nbsp;<\/p>\n\n\n\n<p>This transaction is recorded under accounts payable, as it&#8217;s a short-term liability settled when the payment is made within the agreed timeframe.&nbsp;<\/p>\n\n\n\n<p>These notes payable vs. accounts payable examples highlight the core distinction between these concepts: notes payable involves formal borrowing with structured repayment terms and interest, while accounts payable covers short-term credit for routine operational expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-role-of-accounts-payable-and-notes-payable-in-a-p2p-process\">What is the role of accounts payable and notes payable in a P2P process?<\/h2>\n\n\n\n<p>The role of accounts payable in the Procure-to-Pay (P2P) process is to cover day-to-day supplier invoices, making sure payments are approved and processed on time. Notes payable, on the other hand, manage longer-term financial obligations, such as loans or structured repayment agreements.\u00a0<\/p>\n\n\n\n<p>Keeping a healthy balance between accounts payable and notes payable helps to maintain steady cash flow, avoid late fees, and keep relationships with suppliers and lenders strong.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-streamline-accounts-payable-and-notes-payable-with-the-right-software\">Streamline accounts payable and notes payable with the right software<\/h2>\n\n\n\n<p>Tired of manual payment tracking and inefficient purchasing processes?&nbsp;<\/p>\n\n\n\n<p>Managing notes payable and accounts payable effectively is essential for keeping your business finances in check, and good accounts payable software makes that significantly easier.&nbsp;<\/p>\n\n\n\n<p>With the right tools in place, your accounting team can:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Process invoices automatically, reducing manual entry and minimizing errors.&nbsp;<\/li>\n\n\n\n<li>Create journal entries with ease, saving time on reconciliations and month-end close.&nbsp;<\/li>\n\n\n\n<li>Track loans and debt for notes payable, keeping repayment schedules clear and organized.&nbsp;<\/li>\n\n\n\n<li>Centralize documents into a single source of truth, so nothing falls through the cracks.&nbsp;<\/li>\n\n\n\n<li>Automate payment scheduling and reminders, making sure bills are paid on time.&nbsp;<\/li>\n\n\n\n<li>Process bills and payments across multiple entities, all within a single account.&nbsp;<\/li>\n\n\n\n<li>Use AI-powered payment processing to optimize when and how payments are made based on cash flow forecasts, vendor terms, and preferred payment methods.&nbsp;<\/li>\n\n\n\n<li>Improve financial reporting with real-time insights into your cash position and liabilities.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>Automating your accounts payable and notes payable processes saves time, reduces financial risk, and empowers your team to focus on more strategic work that drives your business forward.<\/p>\n\n\n\n<p>Ready to simplify how you manage accounts payable and notes payable? Explore Sage\u2019s <a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable software.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-notes-payable-vs-accounts-payable-faqs\">Notes payable vs accounts payable FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464832269\"><strong class=\"schema-faq-question\">Are credit cards considered notes payable?<\/strong> <p class=\"schema-faq-answer\">No. Credit card debt is classified separately under short-term liabilities; it doesn&#8217;t fall under notes payable, since it doesn&#8217;t involve a promissory note agreement.<\/p> <\/div> <\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464850104\"><strong class=\"schema-faq-question\">Can an accounts payable entry be converted to a notes payable entry?<\/strong> <p class=\"schema-faq-answer\">Yes. If your business needs more time to pay off an accounts payable balance, you can negotiate with the vendor to convert this liability into a structured notes payable agreement, extending the payment period.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464870043\"><strong class=\"schema-faq-question\">Are notes payable a debit or credit?<\/strong> <p class=\"schema-faq-answer\">Notes payable are recorded as a credit on the balance sheet because they represent a liability\u2014money your business owes to a lender. When the loan is first issued, you debit cash (or the relevant asset account) and credit notes payable. As repayments are made, you debit notes payable and credit cash.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464892881\"><strong class=\"schema-faq-question\">What is the journal entry for notes payable?<\/strong> <p class=\"schema-faq-answer\">When a business takes on a note payable, the journal entry debits cash (or the acquired asset) and credits notes payable for the principal amount. Interest accrued over time is recorded separately as a debit to interest expense and a credit to interest payable.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464911779\"><strong class=\"schema-faq-question\">What happens if accounts payable or notes payable are not managed correctly?<\/strong> <p class=\"schema-faq-answer\">Poor management of either accounts payable or notes payable can lead to late payment penalties, damage to supplier or lender relationships, cash flow shortfalls, and inaccurate financial reporting. In serious cases, missed payments on notes payable can trigger a loan default.\u00a0<br><br>Using <a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a> to track these obligations reduces the risk of errors and missed deadlines.<\/p> <\/div> <\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1779464944492\"><strong class=\"schema-faq-question\">How do notes payable and accounts payable affect the balance sheet?<\/strong> <p class=\"schema-faq-answer\">Both notes payable and accounts payable appear as liabilities on the balance sheet. Accounts payable are always listed under current liabilities. Notes payable can appear under current liabilities (if due within 12 months) or long-term liabilities (if the repayment period extends beyond a year).\u00a0<\/p> <\/div> <\/div>\n\n\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\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness finances\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\/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-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 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_0465-1214x810.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_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\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=\"2026-07-03T08:20:26-04:00\">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\">11 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\/net-asset-value\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tNAV meaning: net asset value formula 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\tNet asset value helps you understand what a fund is worth after liabilities. Learn the NAV formula, how to calculate NAV, and what NAV can\u2014and can\u2019t\u2014tell you.\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-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-2 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-3 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\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-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\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-debit-or-credit\/\"\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_0169-684x384.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_0169-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0169-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0169-1214x810.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=\"2026-07-02T07:15:38-04:00\">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\">8 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\tIs accounts payable a debit or credit?\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>Are 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. <\/p>\n","protected":false},"author":346,"featured_media":11861,"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":[7],"tags":[162,165,224,266,271,267],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["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"],"sage_meta":{"region":"en-ca","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474.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\/14628","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\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=14628"}],"version-history":[{"count":4,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14628\/revisions"}],"predecessor-version":[{"id":14639,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14628\/revisions\/14639"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/11861"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=14628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=14628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=14628"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=14628"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=14628"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=14628"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=14628"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=14628"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=14628"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=14628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}