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When you're managing your small business, you purchase your stocks from suppliers who extend you credit and form part of your Accounts Payable. That means you don't have to pay for your purchases or any services that you request for the duration of the credit period that you've been granted. Your creditor forwards you an invoice which you file until it's due for payment. Accounting for your creditors and paying your bills on time are the duties of an Accounts Payable function. Your bookkeeper must handle a number of important activities to ensure that your Accounts Payable is managed efficiently.
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