Vareto Finance Glossary

Accounts Payable or Payment System

Description

Accounts payable or payment system is an automated system that is used by a company to pay its vendors and suppliers towards the purchase of goods and services. The end objective of this system is to ensure that the business pays the right amount it owes, and pays it on time and to the right vendors/suppliers.

Example

Epicor, Tipalti, Lightyear, FreshBooks, Microsoft Dynamics 365, NetSuite

Why it matters

This software helps companies ensure that all their bills are paid on time. As a company grows, its expenses can be numerous. An accounts payable system can allow the company's finance teams to get a consolidated and accurate view of expenses. It also allows companies to have an approval flow for the payment of expenses.