Accounting
Accounts receivable (AR)
Definition
Accounts receivable is the money customers owe a business for goods or services it delivered on credit, recorded as an asset until the customer pays.
How do you manage accounts receivable well?
- Issue accurate invoices promptly with clear terms.
- Review an ageing report every week.
- Follow up overdue accounts on a set schedule.
- Agree credit limits before selling on credit.
The Accounts Receivable Processing, Collection & Reporting course covers collection steps.
Why does accounts receivable affect cash flow?
Sales on credit are not cash until collected, so slow collection can leave a profitable business short of cash to pay its accounts payable.
Where can you go next?
Courses, checks and reading on the same work.Which sources does this page use?
This page states no statutory figures, so it cites no official source.
Updated 13 November 2026. General information from the Certifyd team, not legal, tax or safety advice for your workplace.