What is accounts receivable?

Accounts receivable are the amounts customers owe a business for invoices issued but not yet collected. They appear as an asset on the balance sheet. Tracking them by age — 30, 60 or 90 days overdue — is one of the main tools for managing cash.

Accounting

Accounts receivable

Accounts receivable are the amounts customers owe a business for invoices issued but not yet collected.

Explained

They appear as an asset on the balance sheet. Tracking them by age — 30, 60 or 90 days overdue — is one of the main tools for managing cash.

Related terms

Balance sheetA balance sheet shows a business’s assets, liabilities and equity at a date; assets always equal liabilities plus equity.
Tax invoiceA tax invoice is issued by a VAT-registered seller and shows the value of the goods or services, the VAT on them and the seller’s tax number.

All terms