oboloo Glossary

Accrual Accounts Receivable

oboloo Glossary

Accrual Accounts Receivable

Accrual Accounts Receivable is a key business concept that businesses must understand in order to ensure the efficient management of their finances. In simple terms, Accrual Accounts Receivable (AR) is the unpaid amount owed to a business by its customers at any given time. AR should be viewed as an asset as money is owed to you and will eventually be received. It’s important to keep track of your customer’s accounts, monitor payments made and balances due, and follow up on outstanding debt promptly in order to maintain sound financial health. Taking appropriate steps to manage AR accounts can help businesses avoid the risk of having invoices go unpaid and help keep their cash flow balanced.