Accounts receivable refers to money owed to your company, while accounts payable refers to money your company owes. When you issue an invoice for goods or services purchased on credit, your company enters it as account receivable. The customer or business that owes you the invoice amount enters it in their ledger as an account payable.nnFor accounting purposes, accounts receivable is an asset that represents future revenue or value coming into the company. Your accounts payable, which represents money you have to pay in the future, is a liability.