Accounting
Accounts Receivable
Definition
|
4 Related Terms
What is Accounts Receivable?
Accounts Receivable (AR) represents money owed to a business by customers for goods or services delivered on credit. It's a current asset on the balance sheet and an important indicator of cash flow health. Managing AR effectively through proper credit policies, timely invoicing, and follow-ups is crucial for maintaining liquidity. In Tally, AR is tracked through sundry debtor ledgers with bill-wise details and aging analysis.
Related Terms
People Also Search For
accounts receivable
accounts receivable meaning
ar in accounting
receivables management
Need Help with Accounting?
Our certified experts can help you with accounting setup, financial reporting, and bookkeeping.