---
title: "Accounts receivable: Meaning for Small Business Owners"
description: "Accounts receivable is the money customers owe a business for goods or services it has already delivered but has not yet been paid for."
url: https://peachtreeva.multisites.ai/glossary/accounts-receivable
publisher: Peachtree VA
book: https://peachtreeva.multisites.ai/contact
---

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](https://peachtreeva.multisites.ai/glossary/balance-sheet), A/R counts as an asset. [Accrual accounting](https://peachtreeva.multisites.ai/glossary/accrual-vs-cash-basis) records the sale when you earn it.

The other side is [accounts payable](https://peachtreeva.multisites.ai/glossary/accounts-payable). Peachtree VA's bookkeepers can manage invoices and A/R follow-up. See our [bookkeeping services](https://peachtreeva.multisites.ai/bookkeeping). 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.

[Peachtree VA can helpOutsourced bookkeeping for small business](https://peachtreeva.multisites.ai/bookkeeping)

## Related terms

-   [Accounts payable](https://peachtreeva.multisites.ai/glossary/accounts-payable)
-   [Balance sheet](https://peachtreeva.multisites.ai/glossary/balance-sheet)
-   [Accrual vs cash basis](https://peachtreeva.multisites.ai/glossary/accrual-vs-cash-basis)

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