What are Accounts Receivable (AR)?
Accounts Receivable (AR) is a current asset on a company’s balance sheet representing amounts owed to the company by customers for goods or services delivered but not yet paid for. AR is recorded when an invoice is issued and removed when payment is received.
AR aging reports (30/60/90+ days) signal collection risk and influence cash flow forecasting. Many startups use AR factoring or financing to accelerate cash conversion, and Days Sales Outstanding (DSO) is a key SaaS/services metric.