invioceA clear understanding of the term Accounts Payable is fundamental to run a business. No matter what your industry, each and every company has an Accounts Payable. It’s important to note that Purchase Orders and Cash Disbursements are very important and closely related to Accounts Payable, as well.

Accounts Payable

All businesses at one point or another will buy something for their company. A perfect example is when the company orders office supplies. Accounts Payable is how a business keeps track of the money that is owed to its suppliers. This is shown as a liability on a balance sheet. Whenever an invoice is received for a product or a service rendered, it typically is entered into the Accounts Payable ledger for approval. Accounting Seed allows you to pay vendors easily. With Accounting Seed, you can manage your credit cards, accounts payable, and purchasing with ease.

How is this different than a Cash Disbursement?

A cash disbursement is when you are actually taking the money out of your Bank Account and paying for the good or service. After an invoice has gone through the approval process in Accounts Payable, it is authorized for payment in the form of a cash disbursement.

Purchase Order

A purchase order is an official order that is issued by a buyer to a seller. It has information on the specific products or services ordered as well as the quantities and the prices that were agreed upon. This is a legally binding agreement on the part of the purchaser to actually buy and pay for what was ordered.

Link Between Accounts Payable and Purchase Orders

Before any Account Payable can be approved for cash disbursement, it must first go through an approval process to ensure that the invoice is for the proper amount. Comparing the invoice to a Purchase Order allows you to make sure that you are being billed for the correct amount. This can serve as an Automate Approval. When the invoice matches the purchase order, then it is able to be disbursed to the vendor.

Tips from Accounting Seed

Reach out to Accounting Seed by emailing us at to discuss how we can successfully manage your company’s Accounts Payable and Purchase Orders. Request a free demo or speak to one of the elite accounting software solution providers of 2018 by calling (410) 995-8406 today.

Accounting Seed’s financial management suite is the top-rated accounting solution on the Salesforce AppExchange. Built on the platform, Accounting Seed utilizes the robust power and comprehensive functionality of Salesforce. Users can effectively manage finances throughout the entire business lifecycle, creating more flexibility than any other financial management solution. Accounting Seed was founded in 2008.