Accounts Receivable
The Accountant's Dictionary
Fri, Jun 19, 2026
Accounts receivable is the amount customers owe the business for goods or services already delivered but not yet collected.
What Accounts Receivable means in business operations
Accounts Receivable is explained here in the context of real finance, payroll, HR, and ERP workflows. This definition is written for business users who need practical understanding that supports implementation, reporting, approvals, reconciliation, and policy decisions.
If you are reviewing related concepts, continue to the The Accountant's Dictionary, browse ERP articles on the Eprecus blog, or explore the Eprecus ERP platform overview.
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Accounts receivable
Accounts receivable represents open customer balances that should convert into cash. It is one of the most important operational finance balances because slow collections can weaken liquidity even when sales look strong.
Why it matters
AR quality affects cash flow, bad debt risk, credit decisions, and management confidence in reported revenue. Businesses that sell on credit need disciplined receivables processes to protect margin and working capital.
How teams use it
Finance and customer operations teams use accounts receivable when monitoring aging, chasing collections, reviewing customer credit, calculating allowance balances, and forecasting cash receipts.
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