What is Account Receivable (A/R)?

Accounts Receivable (A/R) is a term used to refer to the amount of money that a company is owed to its customers.

This term is commonly used in accounting and finance to describe the goods or services a company has provided to a customer but has yet to receive payment. A/R represents the amount of money owed to a company and is considered an asset on the company’s balance sheet. The management of A/R is an important part of a company’s financial strategy, as it affects cash flow and the company’s ability to meet its financial obligations. Proper management of A/R involves monitoring payment terms, following up on overdue payments, and maintaining accurate records of all transactions.