Payable

The term 'payable' refers to an amount of money that is due to be paid to creditors or other parties within a certain timeframe. It can also indicate the specific liabilities or obligations that a business has in terms of repaying debts or disbursing funds. In accounting, these amounts are considered as payables on the balance sheet.

Payable meaning with examples

• The invoice was sent out last week, and the total amount is payable in full by the end of the month. The company has made arrangements to ensure that the accounts payable are managed effectively, thus avoiding any late payment fees. Timely payments contribute positively to the organization's credit rating.
• In the financial department, a thorough review was conducted of all outstanding payables. The accounting team verified the amounts to ensure accuracy before proceeding with the payments. Sticking to the agreed payment schedule helps maintain healthy relationships with vendors and suppliers.
• When setting up a business, it is crucial to keep accurate records of all amounts payable. This not only facilitates smooth cash flow management but also ensures compliance with tax obligations. An organized approach to payables can significantly enhance operational efficiency.
• The contract stipulated that a deposit is payable upon signing and the remaining balance is due upon completion of the work. Such arrangements are common in construction and service agreements. They ensure that both parties have a clear understanding of their financial commitments.