Accounts receivable management is an essential part of running a small business. Effectively, it can help you better understand and predict cash flow, improve customer collections, and make better credit extension decisions. Here’s what you need to know about managing your accounts receivable process.
What are accounts receivable?
“Accounts receivable,” or A/R, is the accounting term for money a business should receive from its customers from the sales of goods or services. It’s the amount of money for which you’ve created invoices but haven’t yet collected payment.
Accounts receivable funds are considered assets because they represent money the company has earned and expects to be paid for.
Dispatches From The Front 