Bookkeeping
Accounts receivable
Accounts receivable is the money customers owe a business for goods or services it has already delivered but has not yet been paid for.
Accounts receivable, or A/R, is the total of unpaid customer invoices. When you finish work and send a bill, the amount sits in A/R until the customer pays. An aging report shows how long each invoice has been open.
A/R matters because profit on paper is not cash in the bank. Slow payers can strain a small business. Regular invoicing, clear terms and friendly follow-up help. On a balance sheet, A/R counts as an asset. Accrual accounting records the sale when you earn it.
The other side is accounts payable. Peachtree VA's bookkeepers can manage invoices and A/R follow-up. See our bookkeeping services. Many owners review an aging report each month to see which customers are late, so follow-up happens before a small delay becomes a loss.
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