Accounts Receivable is an asset on a business’ balance sheet, representing all the money owed to them by customers who have already received a good or service. This classification can help businesses track how much they are owed and enable them to take proactive steps to ensure they receive payments from their customers. The accounts receivable figure gives a valuable insight into a company’s overall financial health and provides an indication of liquidity. A high accounts receivable balance can indicate that customers are taking too long to pay the business, leaving the business in a vulnerable position and affecting its ability to pay for costs.