📨Accounts Receivable Process

Quoted from Investopedia:

Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR.

The purpose of the accounts receivable process is to make sure that sales invoices are correctly recorded and that customers pay on time. This includes keeping track of the money owed from sales and making sure it is paid back. Managing a receivables account is all about matching sales with payments.