What is AP/AR?

AP/AR stands for Accounts Payable/Accounts Receivable. Accounts Payable (AP) refers to the money a company owes to its suppliers or vendors for goods or services received but not yet paid for. Accounts Receivable (AR) refers to the money a company is owed by its customers for goods or services delivered but not yet paid for. These are fundamental accounting processes critical for managing a company's cash flow and financial health.