Final answer:
To know how much your client owes their vendors, I would suggest reviewing the Accounts Payable report. This report provides a summary of all outstanding invoices and payments due to vendors.
Step-by-step explanation:
To know how much your client owes their vendors, I would suggest reviewing the Accounts Payable report. This report provides a summary of all outstanding invoices and payments due to vendors. It will show the total amount owed, the vendor names, and the specific invoices contributing to the balance.
For example, if your client uses accounting software like QuickBooks or Xero, they can generate an Accounts Payable Aging report. This report categorizes the outstanding balances based on the time elapsed since the invoice date. It helps identify any overdue payments and allows for better cash flow management.
By reviewing the Accounts Payable report, your client will have a clear understanding of their outstanding obligations to vendors and can take necessary actions accordingly.