Accounts Receivable

Financial Term

Accounts Receivable is a standard accounting category on a company’s balance sheet that represents money owed by customers for products delivered or services used that they haven’t yet paid for.

While it may not feel yet like you really “own” that money yet, accountants think so, thus it is on the Assets side of the balance sheet.

Actually, the accountants will only put it there if you’ve given your customers an invoice, or a statement, or some other written evidence you’ve actually asked your customers to get paid. Don’t forget to do that!

Don Gooding

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