Suppliers
What are Suppliers?
Suppliers are individuals or organizations who provide goods and services to a business.
![sps1](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps1.jpg)
How it Works
To operate, a business will need to buy goods and services.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps2.jpg)
The business may pay cash for some of these goods and services.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps3.jpg)
That is, they take money out of the bank and pay straight away.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps4.jpg)
At the same time, though, it will buy goods and services on credit.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps5.jpg)
This means the business is allowed to pay for the goods or services later.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps6.jpg)
The business buys the goods and services from suppliers.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps7.jpg)
Typically, a business will have many suppliers.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps8.jpg)
Some will be individuals, such as tradespeople.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps9.jpg)
Others will be a company or corporation.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sps10.jpg)
© R.J. Hickman 2020