Accounts Receivable

Accounts receivable is money owed to a company by customers for goods or services already billed or delivered.

Accounts receivable is the balance customers owe after a company has delivered goods or services on credit. It is a working-capital asset because it should turn into cash when customers pay invoices.

Accounts receivable quality affects DSO, accounts receivable turnover, and cash conversion cycle. Compare collection speed with DSO benchmarks by industry.