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Finance

Accounts Receivable

Also known as ar, receivables, money owed by customers, trade receivables

Money customers owe you for work already delivered but not yet paid for. It counts as revenue, but you cannot spend it until it actually arrives.

Example

Delivering a ₹2,00,000 project on 30-day terms puts ₹2,00,000 into receivables until the client pays.

Related terms

DSO
The average number of days customers take to pay you. High DSO means profitable on paper but short of cash in reality.
Cash Flow
The actual money moving in and out of your business. You can be profitable on paper but still run out of cash if money comes in late.
Accounts Payable
Money your business owes to suppliers for things already received but not yet paid for.
Invoice
The formal bill you send a customer listing what they bought and when payment is due.

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