Accounts Payable, Explained for NZ Businesses
What creditor days and DPO are and how to calculate them, how accounts payable differs from accounts receivable, how many days to take to pay suppliers, and how to set up a payment run that keeps every trade account in good standing.
Why How You Pay Suppliers Matters
Accounts payable is the money your business owes its suppliers. Paying it too early drains cash you could have kept a few weeks longer; paying it late costs you credit limits, early payment discounts and, eventually, the account itself. This guide covers the numbers that show where you sit (creditor days and DPO) and the routines that keep you there, with NZ trade terms like the 20th of the month following front and centre. It's the other side of the Accounts Receivable guide — start with accounts payable vs accounts receivable if you're new to both.
Every Accounts Payable Article
The Basics
- Accounts Payable vs Accounts Receivable: Explained Simply — one NZ invoice followed from both sides
- What Are Creditor Days and How Do You Calculate Them? — the formula and a worked NZ example
- What Is DPO (Days Payable Outstanding)? — the international name for creditor days
Paying Suppliers Well
- How Many Days Should You Take to Pay Suppliers? — paying on the due date, and why stretching backfires
- What Is a Payment Run and How Often Should You Do One? — weekly, fortnightly or monthly, timed around the 20th
Related Reading
- Accounts Receivable guide — debtor days, aging reports and getting paid faster
- Payment Terms guide — what Net 30, EOM and the 20th of the month following mean
- Trade Accounts guide — how trade accounts work and what happens if you default
- How Payment Terms Affect the Cash Conversion Cycle
Pay Suppliers on Time Without the Cash Crunch
PaidTerms lets approved business customers split a supplier invoice into monthly instalments, while the supplier is paid in full upfront.
