accounting
What is Accounts Receivable?
Money that customers owe your business for goods or services already delivered but not yet paid for.
In plain English
Accounts receivable (AR) represents your outstanding invoices — revenue you've earned but haven't yet collected. Poor AR management is one of the leading causes of small business cash flow problems: you may be profitable on paper but cash-poor because customers are paying slowly. Automating AR — sending invoice reminders at 7, 14, and 30 days overdue, and escalating to a different contact if still unpaid — is one of the highest-ROI automations for any B2B service business.