Accounts Receivable

Overview

Accounts receivable are the total amounts that customers or debtors owe a business for goods or services sold on credit.

Common Use Cases

• Forecasting cash flow.
• Assessing customers' creditworthiness.
• Managing customer credit.
• Tracking collections.

Examples in Small Businesses

• Setting payment terms for customers.
• Analysing bad debts.
• Improving invoice collection.