Glossary
What is accounts receivable?
Accounts receivable is the money customers owe your business for work or goods already delivered.
It shows on your balance sheet as an asset, but it's only useful once it turns into cash. Keeping it low and current is what invoice follow up is for.
Example
If you've sent $12,000 of invoices that haven't been paid yet, your accounts receivable is $12,000.
In Australia
Often shortened to AR, or called debtors in Australian accounting.
General information only, not legal or financial advice.