Accounts receivable calculation is a process of tracking and keeping track of debts owed by customers or clients to an individual or a business. This calculation encompasses the amount of money that customers owe and the length of time they have been outstanding. The primary focus of this calculation is to ensure that all invoices are paid on time, so that the company can maintain a steady cash flow and maximize its profits. In essence, accounts receivable calculation is about accurately forecasting the future revenue a business will receive from its customers. It’s a critical component of any financial plan—and, properly managed, it can be a powerful tool for optimizing short-term cash flow, as well as maintaining good customer relationships.