{"id":29452,"date":"2026-08-17T09:38:19","date_gmt":"2026-08-17T13:38:19","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=29452"},"modified":"2026-08-17T09:40:22","modified_gmt":"2026-08-17T13:40:22","slug":"accounts-payable-asset-or-liability","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-asset-or-liability\/","title":{"rendered":"Is accounts payable an asset or a liability?"},"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-us\/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 an asset or a liability?\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\tIs accounts payable an asset or a liability? Accounts payable is a current liability because it represents money your business owes to suppliers. Learn where it appears on the balance sheet and why this classification matters.\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=\"2026-08-17T09:38:19-04:00\">August 17, 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 an asset or a liability?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-asset-or-liability\/\"\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-us\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/lauraslingo\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2026\/03\/laura-slingo-headshot-350x350.jpg\" class=\"entry-author__image\" alt=\"Laura Slingo\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2026\/03\/laura-slingo-headshot-350x350.jpg 350w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2026\/03\/laura-slingo-headshot.jpg 400w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Laura Slingo<\/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<section class=\"wp-block-sage-article-update\"><div class=\"sage-article-update__inner\"><p>This article was originally published on April 8, 2025, but has been refreshed and re-published with new content on August 17, 2026.<\/p><\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-let-s-say-your-business-receives-goods-today-but-the-supplier-s-invoice-is-not-due-for-another-30-days-until-you-pay-it-the-amount-sits-in-accounts-payable-ap-on-your-balance-sheet-accounts-payable-is-a-current-liability-not-an-asset\">Let\u2019s say your business receives goods today, but the supplier\u2019s invoice is not due for another 30 days. Until you pay it, the amount sits in <a href=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-accounts-payable\/\">Accounts Payable<\/a> (AP). On your balance sheet, accounts payable is a current liability, not an asset.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Why does that classification matter? It affects how your business reports what it owes and assesses its short-term financial position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide explains why accounts payable is classified as a liability, how it is recorded, and where it appears in your financial statements.<\/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 current liability, not an asset or equity, because it records unpaid supplier invoices for goods or services your business has already received.<\/li>\n\n\n\n<li>When you record a supplier invoice, you normally credit accounts payable and debit the relevant expense or asset account. Paying the invoice debits accounts payable and credits cash.<\/li>\n\n\n\n<li>Accounts payable tracks money your business owes suppliers, while accounts receivable is a current asset that tracks money customers owe your business.<\/li>\n\n\n\n<li>Accurate accounts payable records support cash flow planning, timely supplier payments, and reliable financial reporting, while automation can reduce manual work and strengthen controls.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-ll-cover\" class=\"wp-block-heading\">Here\u2019s what we\u2019ll cover<\/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-is-accounts-payable-an-asset-or-a-liability\" data-level=\"2\">Is accounts payable an asset or a liability?<\/a><\/li><li><a href=\"#h-assets-versus-liabilities-what-s-the-difference\" data-level=\"2\">Assets versus liabilities: What&rsquo;s the difference?<\/a><\/li><li><a href=\"#h-is-accounts-payable-a-debit-or-a-credit\" data-level=\"2\">Is accounts payable a debit or a credit?<\/a><\/li><li><a href=\"#h-how-is-accounts-payable-reported-on-financial-statements\" data-level=\"2\">How is accounts payable reported on financial statements?<\/a><\/li><li><a href=\"#h-what-is-the-role-of-accounts-payable\" data-level=\"2\">What is the role of accounts payable?<\/a><\/li><li><a href=\"#h-what-is-the-difference-between-accounts-payable-and-accounts-receivable\" data-level=\"2\">What is the difference between accounts payable and accounts receivable?<\/a><\/li><li><a href=\"#h-what-are-some-examples-of-accounts-payable-liabilities\" data-level=\"2\">What are some examples of accounts payable liabilities?<\/a><\/li><li><a href=\"#h-can-you-write-off-accounts-payable\" data-level=\"2\">Can you write off accounts payable?<\/a><\/li><li><a href=\"#h-can-accounts-payable-be-a-long-term-liability\" data-level=\"2\">Can accounts payable be a long-term liability?<\/a><\/li><li><a href=\"#h-how-can-automation-improve-accounts-payable\" data-level=\"2\">How can automation improve accounts payable?<\/a><\/li><li><a href=\"#h-frequently-asked-questions-about-accounts-payable-as-a-current-liability\" data-level=\"2\">Frequently asked questions about accounts payable as a current liability<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-is-accounts-payable-an-asset-or-a-liability\" class=\"wp-block-heading\">Is accounts payable an asset or a liability?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable is a current liability, not an asset. It represents money your business owes suppliers for goods or services already received, with payment usually due within the business\u2019s normal operating cycle and often within 30 to 90 days.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable appears under current liabilities on the balance sheet until the invoice is paid. Think of it as an unpaid supplier bill: your business has received the value, but the obligation to pay remains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable is also not equity. Assets are resources the business owns or controls, while equity represents the owners\u2019 remaining interest in the business after liabilities are deducted from assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To understand why accounts payable is classified this way, it helps to look at the difference between assets and liabilities.<\/p>\n\n\n\n<h2 id=\"h-assets-versus-liabilities-what-s-the-difference\" class=\"wp-block-heading\">Assets versus liabilities: What\u2019s the difference?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Assets are resources your business owns or controls that can provide future economic benefits, while liabilities are obligations your business must settle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the difference between these two core categories on your company\u2019s balance sheet helps your accounting team maintain accurate financial records and compare the resources available to the business with the obligations it must settle.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-first-column\"><table class=\"has-fixed-layout\"><thead><tr><th>Difference<\/th><th>Assets<\/th><th>Liabilities<\/th><\/tr><\/thead><tbody><tr><td><strong>What they represent<\/strong><\/td><td>Resources your business owns or controls.<\/td><td>Obligations your business must settle.<\/td><\/tr><tr><td><strong>How they affect the business<\/strong><\/td><td>Assets support business operations, may generate revenue, or can be converted into cash.<\/td><td>Liabilities require the business to pay cash or transfer other resources.<\/td><\/tr><tr><td><strong>Where they appear<\/strong><\/td><td>The assets section of the balance sheet.<\/td><td>The liabilities section of the balance sheet.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"h-what-is-an-asset\" class=\"wp-block-heading\">What is an asset?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/blog\/a-comprehensive-guide-to-assets-and-asset-management\/\">An asset<\/a> is a resource your business owns or controls that has economic value. Assets may help the business generate revenue, support daily operations, or be converted into cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Common examples of assets include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash and cash equivalents:<\/strong> cash held in bank accounts and highly liquid short-term investments that can be readily converted into cash.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-accounts-receivable\/\"><strong>Accounts Receivable (AR)<\/strong><\/a><strong>:<\/strong> amounts customers owe your business for goods or services it has already provided.<\/li>\n\n\n\n<li><strong>Inventory:<\/strong> products, materials, or supplies your business holds for sale or uses in production.<\/li>\n\n\n\n<li><strong>Property, equipment, and vehicles:<\/strong> tangible assets such as office buildings, machinery, computers, and company vehicles that support daily operations over time.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-what-is-a-liability\" class=\"wp-block-heading\">What is a liability?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-are-liabilities\/\">A liability<\/a> is an obligation your business must settle, usually by paying cash or transferring another resource. Liabilities include outstanding bills, loans, and other amounts the business must pay or settle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Common examples of liabilities include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loans payable:<\/strong> business loans or borrowed funds that must be repaid over time, often with interest.<\/li>\n\n\n\n<li><strong>Salaries payable:<\/strong> wages employees have earned but the business has not yet paid.<\/li>\n\n\n\n<li><strong>Taxes payable:<\/strong> income tax, sales tax, payroll tax, or other taxes the business owes to a government authority.<\/li>\n\n\n\n<li><strong>Accounts Payable (AP):<\/strong> money owed to suppliers for goods or services already received but not yet paid for, under agreed <a href=\"https:\/\/www.sage.com\/en-us\/blog\/invoice-payment-terms-definition-and-tips\/\">payment terms<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-is-accounts-payable-a-debit-or-a-credit\" class=\"wp-block-heading\">Is accounts payable a debit or a credit?<strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable normally has a credit balance because it is a liability account. In double-entry accounting, credits increase liabilities, while debits decrease them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When your business receives a supplier invoice, you credit accounts payable to record the amount owed and debit the relevant expense or asset account. When your business pays the invoice, you debit accounts payable to reduce the liability and credit cash.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Step<\/th><th>Debit<\/th><th>Credit<\/th><\/tr><\/thead><tbody><tr><td><strong>Receive a $1,000 office supplies invoice<\/strong><\/td><td>Office supplies expense: $1,000<\/td><td>Accounts payable: $1,000<\/td><\/tr><tr><td><strong>Pay the invoice<\/strong><\/td><td>Accounts payable: $1,000<\/td><td>Cash: $1,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Each supplier invoice increases the credit balance in accounts payable, while each payment reduces it. Understanding <a href=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-debit-or-credit\/\">whether accounts payable is a debit or credit<\/a> in different transactions can help you record supplier invoices and payments correctly.<\/p>\n\n\n\n<h2 id=\"h-how-is-accounts-payable-reported-on-financial-statements\" class=\"wp-block-heading\">How is accounts payable reported on financial statements?<strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable is reported as a current liability on the balance sheet because it represents unpaid supplier invoices the business expects to settle within one year or its normal operating cycle, whichever is longer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable is reflected across the financial statements in three main ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Balance sheet:<\/strong> the outstanding amount appears under current liabilities until the supplier is paid.<\/li>\n\n\n\n<li><strong>Income statement:<\/strong> accounts payable itself doesn\u2019t appear on the income statement. The related purchase may be recorded as an expense or asset, depending on what the business bought.<\/li>\n\n\n\n<li><strong>Cash flow statement:<\/strong> paying a supplier reduces cash. Under the indirect method, changes in accounts payable relating to operating activities are included in the adjustments used to calculate operating cash flow.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should regularly reconcile supplier invoices, payment records, and the accounts payable ledger to confirm that the reported balance is complete and accurate.<\/p>\n\n\n\n<h2 id=\"h-what-is-the-role-of-accounts-payable\" class=\"wp-block-heading\">What is the role of accounts payable?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable is more than a record of unpaid bills. Keeping accounts payable accurate and organized helps your business manage outgoing cash, meet payment obligations, and maintain reliable financial records.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Effective accounts payable management helps your business:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Track short-term liabilities<\/strong> by recording what is owed to suppliers for goods or services already received.<\/li>\n\n\n\n<li><strong>Maintain supplier relationships<\/strong> by paying invoices according to agreed terms and resolving discrepancies promptly.<\/li>\n\n\n\n<li><strong>Plan cash flow<\/strong> by giving your team visibility into upcoming payments and your available cash position.<\/li>\n\n\n\n<li><strong>Capture early payment discounts<\/strong> when they are available and financially worthwhile.<\/li>\n\n\n\n<li><strong>Avoid late fees and supply disruptions<\/strong> by monitoring invoice due dates and settling obligations on time.<\/li>\n\n\n\n<li><strong>Support accurate financial reporting<\/strong> by ensuring purchases, liabilities, and payments are recorded in the correct period.<\/li>\n\n\n\n<li><strong>Strengthen internal controls and audit readiness<\/strong> by maintaining a clear audit trail for invoices, approvals, and payments.<\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\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\">Sage Intacct Accounts Payable Automation<\/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><!-- wp:paragraph --><\/p>\n<p class=\"\">Download this datasheet to learn how Sage Intacct can save you hundreds of hours and shave days from your AP cycle with AP automation software.<\/p>\n<p><!-- \/wp:paragraph --><\/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-d01f3f37-275f-473b-9736-41a025d18f72\"\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>Download<\/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=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1185859128-1214x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1185859128-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-what-is-the-difference-between-accounts-payable-and-accounts-receivable\" class=\"wp-block-heading\">What is the difference between accounts payable and accounts receivable?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-vs-accounts-receivable-a-guide\/\">Accounts payable and accounts receivable<\/a> track opposite sides of credit transactions. Accounts payable is money your business owes suppliers, while accounts receivable is money customers owe your business.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-first-column\"><table class=\"has-fixed-layout\"><thead><tr><th>Difference<\/th><th><strong>Accounts payable<\/strong><\/th><th><strong>Accounts receivable<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Tracks<\/strong><\/td><td>Money your business owes suppliers<\/td><td>Money customers owe your business<\/td><\/tr><tr><td><strong>Type of transaction<\/strong><\/td><td>A purchase made on credit<\/td><td>A sale made on credit<\/td><\/tr><tr><td><strong>Balance sheet classification<\/strong><\/td><td>Current liability<\/td><td>Current asset<\/td><\/tr><tr><td><strong>Cash effect<\/strong><\/td><td>Paying suppliers reduces cash<\/td><td>Collecting customer payments increases cash<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-what-are-some-examples-of-accounts-payable-liabilities\" class=\"wp-block-heading\">What are some examples of accounts payable liabilities?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An accounts payable liability arises when your business receives goods or services on credit but has not yet paid the supplier. The unpaid amount appears under current liabilities on the balance sheet until the invoice is settled.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Common examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Restaurant supplies:<\/strong> a restaurant orders $5,000 worth of food supplies with payment due in 30 days. The business records the $5,000 in accounts payable until it pays the supplier.<\/li>\n\n\n\n<li><strong>Manufacturing materials:<\/strong> a manufacturer purchases raw materials on credit with payment due in 60 days. The unpaid amount remains in accounts payable until the invoice is settled.<\/li>\n\n\n\n<li><strong>Marketing services:<\/strong> a small business receives a $10,000 invoice for an advertising campaign, due in 45 days. The business records the $10,000 in accounts payable until it pays the invoice.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In each example, the business has already received the goods or services but still has an obligation to pay. Recording these liabilities accurately helps the business plan cash outflows and pay suppliers on time.<\/p>\n\n\n\n<h2 id=\"h-can-you-write-off-accounts-payable\" class=\"wp-block-heading\">Can you write off accounts payable?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, but accounts payable shouldn\u2019t be removed from your books simply because an invoice is old or remains unpaid. A liability can generally be removed only when it has been paid or otherwise settled, the supplier has formally forgiven it, or your business has been legally released from the obligation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under US <a href=\"https:\/\/www.sage.com\/en-us\/blog\/a-guide-to-generally-accepted-accounting-principles-gaap\/\">Generally Accepted Accounting Principles (GAAP)<\/a>, a liability is derecognized <a href=\"https:\/\/storage.fasb.org\/ASU%202016-04.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">when it has been extinguished<\/a>, including when the debtor pays the creditor or is legally released by the creditor or through a judicial process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may happen when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The supplier forgives the debt:<\/strong> the supplier formally confirms that your business no longer needs to pay all or part of the invoice.<\/li>\n\n\n\n<li><strong>A settlement is agreed:<\/strong> your business and the supplier agree in writing that a reduced payment will fully settle the outstanding balance. Once the agreed terms have been met, the remaining balance can be removed.<\/li>\n\n\n\n<li><strong>The business is legally released:<\/strong> the supplier, another creditor, or a court releases your business from its obligation to pay.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">An expired statute of limitations does not automatically mean an accounts payable balance should be written off, as the legal and accounting treatment can vary by jurisdiction and circumstance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Forgiven or canceled debt may also have tax consequences, so your business should confirm the correct treatment with a qualified accountant or legal adviser before removing the liability. The Internal Revenue Service (IRS) states that <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc431\" target=\"_blank\" rel=\"noreferrer noopener\">canceled debt<\/a> is generally taxable unless an exception or exclusion applies.<\/p>\n\n\n\n<h2 id=\"h-can-accounts-payable-be-a-long-term-liability\" class=\"wp-block-heading\">Can accounts payable be a long-term liability?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, but this is uncommon. Accounts payable is normally classified as a current liability because supplier balances are generally due within one year or the business\u2019s normal operating cycle, whichever is longer. This means a balance due after 12 months may still be current if it falls within a longer operating cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If payment is due beyond that period, the obligation may be classified as a noncurrent liability. However, extended supplier financing or installment arrangements may need to be reported separately from ordinary accounts payable, depending on their terms, substance, and the applicable accounting standards.<\/p>\n\n\n\n<h2 id=\"h-how-can-automation-improve-accounts-payable\" class=\"wp-block-heading\">How can automation improve accounts payable?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable automation reduces the manual work involved in processing supplier invoices, routing approvals, and tracking payments. It can help accounting teams work more efficiently while improving the accuracy and visibility of invoices and outstanding liabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the right AP software, your team can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Save time<\/strong> by using AI-powered data extraction to capture invoice information and route approvals automatically.<\/li>\n\n\n\n<li><strong>Reduce errors<\/strong> by limiting repetitive manual data entry.<\/li>\n\n\n\n<li><strong>Strengthen controls<\/strong> through automated approvals, permissions, purchase order matching, and clear audit trails.<\/li>\n\n\n\n<li><strong>Track liabilities more clearly<\/strong> with real-time visibility into invoices, due dates, approvals, and payment status.<\/li>\n\n\n\n<li><strong>Connect financial records<\/strong> by integrating AP workflows with your accounting system.<\/li>\n\n\n\n<li><strong>Maintain a clearer audit trail <\/strong>through consistent approval and payment records.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-\">Sage accounts payable software brings these capabilities together, helping your team automate invoice processing and approvals, strengthen financial controls, and gain clearer visibility into payments and cash flow. Explore <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/accounts-payable\/\">accounts payable software<\/a> to find the right AP automation solution for your business.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-frequently-asked-questions-about-accounts-payable-as-a-current-liability\" class=\"wp-block-heading\">Frequently asked questions about accounts payable as a current liability<\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-84557b2f\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-is-accounts-payable-included-in-working-capital\" class=\"wp-block-heading\">Is accounts payable included in working capital?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Yes. Accounts payable is included in current liabilities, which are subtracted from current assets when calculating working capital. If accounts payable increases while everything else remains unchanged, working capital decreases. The standard calculation is current assets minus current liabilities.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-d82fc276\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-is-the-difference-between-accounts-payable-and-accrued-expenses\" class=\"wp-block-heading\">What is the difference between accounts payable and accrued expenses?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Accounts payable usually relates to supplier invoices the business has already received and recorded. Accrued expenses relate to costs already incurred when an invoice has not yet been received, so the amount may need to be estimated. Both are generally recorded as current liabilities.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-c8b747a3\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-is-accounts-payable-considered-debt\" class=\"wp-block-heading\">Is accounts payable considered debt?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Accounts payable is money the business owes, but it\u2019s not usually treated as debt in the same way as loans or other interest-bearing borrowings. Ordinary accounts payable arises from supplier credit used in day-to-day operations.<\/p>\n\n<p class=\"wp-block-paragraph\">A supplier finance arrangement with financing-like terms may require different presentation or additional disclosure, depending on the agreement and applicable accounting standards.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-37f59927\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-can-accounts-payable-have-a-debit-balance\" class=\"wp-block-heading\">Can accounts payable have a debit balance?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Accounts payable normally has a credit balance. A debit balance in a supplier account may indicate an overpayment, prepayment, supplier credit that exceeds outstanding invoices, or posting error. The balance should be investigated and may need to be corrected or reclassified as a receivable or prepaid asset, depending on the cause.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-8ff9b912\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-happens-if-accounts-payable-is-recorded-incorrectly\" class=\"wp-block-heading\">What happens if accounts payable is recorded incorrectly?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Understating accounts payable makes current liabilities appear too low and may overstate working capital. Overstating accounts payable makes current liabilities appear too high and may understate working capital. Either error can also misstate the related expense or asset account and reduce the reliability of the financial statements.<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\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 our 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>Get our latest business advice delivered directly to your inbox.<\/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-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/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-us\/blog\/hub\/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-us\/blog\/hub\/automation\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAutomation\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-us\/blog\/hub\/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-us\/blog\/hub\/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-28805 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-accounting-101 tag-business-intelligence tag-business-strategy tag-cash-flow business_type-small-business business_type-growing-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=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1464788033-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1464788033-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1464788033-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1464788033-1215x810.jpg 1215w\" 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=\"2026-08-28T10:52:25-04:00\">August 28, 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\">7 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-us\/blog\/general-ledger-vs-general-journal\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tGeneral journal vs general ledger: What\u2019s the difference?\u00a0\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\tGeneral ledgers and general journals are important financial tools for any business. But what exactly are they, and how do they differ from each other? Learn about their purposes and how to distinguish between the two.\u202f\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-30503 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-cash-flow 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-us\/blog\/what-is-bank-reconciliation\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0994-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0994-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0994-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0994-1215x810.jpg 1215w\" 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=\"2026-08-28T08:07:43-04:00\">August 28, 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\">16 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\tBank reconciliation: What it is, how to do it, 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-27764 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-sage-accounting business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-accounts-receivable\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1312633987-684x384.jpg\" class=\"card-post__image\" alt=\"Corporately dressed man taking notes with tea mug on table\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1312633987-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1312633987-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1312633987-1440x810.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=\"2026-08-28T07:22:10-04:00\">August 28, 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\tWhat is accounts receivable? Definition 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-3 post-30833 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-strategy-legal-operations tag-accountants tag-accounting-101 tag-boss-your-business tag-business-intelligence tag-cash-flow tag-fixed-assets tag-growing-a-business tag-small-business tag-starting-a-business tag-staying-competitive tag-tax business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/balance-sheet-template\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-586970671-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-586970671-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-586970671-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-586970671-1215x810.jpg 1215w\" 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=\"2026-08-27T05:34:30-04:00\">August 27, 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\tBalance sheet template for Excel: Free download\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-27696 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters tag-accountants tag-accounting-101 tag-sage-accounting business_type-small-business business_type-accountants business_type-growing-business industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/best-practices-in-nonprofit-accounting-a-complete-guide\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1408431081-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1408431081-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1408431081-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1408431081-1215x810.jpg 1215w\" 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=\"2026-08-26T07:58:49-04:00\">August 26, 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\">14 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\tNonprofit accounting basics 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>Is accounts payable an asset or a liability? Accounts payable is a current liability because it represents money your business owes to suppliers. Learn where it appears on the balance sheet and why this classification matters.<\/p>\n","protected":false},"author":346,"featured_media":20248,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"is accounts payable an asset or liability\",\"score\":70},{\"keyword\":\"accounts payable liability or asset \",\"score\":70}]","_yoast_wpseo_keywordsynonyms":"[\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"43","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[158,43,44,49],"tags":[110,334,299,34],"business_type":[40,312],"lilypad":[],"context":[],"industry":[],"persona":[96,97],"imagine_tag":[209,435,436,446,230],"coauthors":[587,1059],"class_list":["post-29452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accountants","category-money-matters","category-strategy-legal-operations","category-trends-insights","tag-accounting-101","tag-automation","tag-cash-flow","tag-small-business","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-us","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1327235816.jpg","imagine_tags":{"209":"Accounting","435":"Intacct Accountants","436":"Intacct Accounting","446":"Intacct Small Business","230":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=29452"}],"version-history":[{"count":5,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29452\/revisions"}],"predecessor-version":[{"id":37624,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29452\/revisions\/37624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/20248"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=29452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=29452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=29452"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=29452"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=29452"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=29452"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=29452"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=29452"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=29452"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=29452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}