Account Receivable in a balance sheet is defined as money owed to a business by its customers. This money can be billed as part of a contract or invoice, or through sales and services provided. The amount of money owed can be documented throughout the duration of the agreement, with an individual record stored for each customer that owes the business money. A business’ account receivable balance sheet will document all of their current outstanding payments, showing how much money is currently owed by customers and when it is expected to be received. By tracking account receivables and monitoring payments, businesses can stay on top of any potential financial issues and ensure their cash flow remains healthy.