Accounts receivable is the balance of money due to a business for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. Accounts receivable is any amount of money owed by customers for purchases made on credit.
In today’s time, Accounts Receivable is most important factor of every entity as cash flow is utmost importance in every entity. Business growth, performance, stability etc. depends on the account receivable of the entity. Management has to spend more time to manage their receivables.