Finance Dictionary : Accounts Receivable

Accounts Receivable


Optimize cash flow and financial stability with our comprehensive accounts receivable ledger. Effectively manage short-term accounts, track debtor invoices, and ensure timely payments for a robust financial future within a 12-month timeframe.



Accounts receivable is an essential financial record that comprehensively documents all outstanding short-term accounts, typically with a duration of less than 12 months, arising from customers to whom a business has sold goods or services. These customers, termed debtors, are generally recipients of invoices issued by the business. The accounts receivable ledger serves as a vital tool in financial management, offering an organized and detailed account of the monetary amounts owed to the business by its clientele. Monitoring and effectively managing accounts receivable are imperative for businesses to ensure timely receipt of payments and maintain a healthy cash flow. This systematic tracking process aids in facilitating efficient financial planning and contributes to the overall financial stability of the business entity.


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