Why profit and cash are different
Recording a vendor bill recognizes expense immediately on an accrual book. Cash leaves later, when the payment journal posts. Capitallytics AP, cash flow, and AI CFO are meant to stay aligned with that distinction.
Explore the illustrative walkthrough on the accounting page to see a sample unpaid bill that does not reduce cash.
AP in the connected system
Accounts payable sits beside the account book, transactions, ledger, statements, and reports. It is not a standalone invoice list disconnected from financial statements.
How bills move through the books
When you record a bill, the book debits the expense (or asset) account and credits accounts payable. Nothing happens to cash. When you pay it, accounts payable is debited and the bank account credited, and only then does cash fall. Part-payments are supported: the bill stays open as partially paid with its remaining balance due.
Bills can be entered one by one or imported from a spreadsheet, and recurring bill templates such as rent or software subscriptions create drafts on schedule for you to review. Account suggestions propose an expense account for each bill; you review them and confirm before anything is posted.
Aging and what to pay first
The aging report sorts open balances into Current, 1–30, 31–60, 61–90 and 90+ days past due. Overdue balances also appear on Business Home and reduce runway after bills due, so a pile of unpaid bills cannot make the business look healthier than it is.
A simple order works for most small teams: anything that stops operations or attracts penalties first, then the oldest overdue balances, then bills due in the next 30 days by due date. Paying well before the due date is rarely necessary unless there is an early-payment discount.