Accounts Receivable
Accounts receivable (AR) is money that customers owe your business for goods or services already delivered. When you invoice a client and they have not yet paid, that outstanding amount is an account receivable, an asset on your balance sheet but not yet cash in your account.
Types
Current AR (0–30 days)
Invoices within normal payment terms. Most customers are expected to pay here.
Aging AR (31–90+ days)
Invoices past due. The older the receivable, the less likely it is to be collected at full value. Invoices over 90 days old often require active collections effort.
Why it matters
AR is one of the most common reasons profitable businesses have cash flow problems. You have done the work and earned the revenue, but until the invoice is paid you cannot use that money for payroll, supplies, or growth. Slow-paying clients quietly drain your working capital.
Real-world example
A field service contractor has $85,000 in outstanding invoices. $40,000 is current (under 30 days). $30,000 is 31–60 days old. $15,000 is over 90 days old and at serious risk of not being collected. That $85,000 shows as revenue and profit on paper, but it is not cash.
Ask FREM about your data
Ask FREM: "Which customers have invoices over 60 days old?" to get an instant collections priority list from your QuickBooks data.
Start free trial →Related terms
Stop reading about accounts receivable. Start measuring yours.
Connect your accounts and ask FREM anything about your actual business finances, in plain English, from your real data.
Start 7-Day Free Trial