Accounts receivable

What is Accounts Receivable?

Accounts receivable refers to the amount of money that a business is owed by its customers for goods or services that have been delivered but not yet paid for. This asset is recorded on a company's balance sheet, and is a crucial component of working capital. For example, if a company sells a product to a customer for $1,000 and gives the customer 30 days to pay, the $1,000 is recorded as an accounts receivable until the customer pays. Effective management of accounts receivable is important for a company's cash flow and overall financial health. This involves monitoring aging accounts, following up with customers on outstanding balances, and establishing credit policies to minimize the risk of bad debt.

Looking for a better way to run your service business?

Copilot’s product suite gives businesses an all-in-one solution for client management, messaging, payments, file-sharing, contracts, forms, help desks, and more. Additionally, Copilot enables businesses to offer their clients a unified experience with a branded client portal. To give Copilot a try you can start a free 14-day trial here.