Accounts payable is a general account tracking money owed, generally to suppliers, that has yet to be paid. The accounts payable may be in the form of tabs held by suppliers or in credit cards and lines of credit a business can use to purchase supplies.

A notes payable is set up to reflect payment for a loan that is issued with a formal promissory note or that requires collateral and is a structured or deferred payment. A notes payable tends to be a long-term liability which is important to distinguish from current liabilities that are assumed by the accounts payable.