Average Account Receivable (AAR) is a key metric that measures the average amount of time it takes customers to pay their invoices. It’s important for businesses to keep track of this information as it provides insights into customer payment behavior, cash flow stability, and overall efficiency. The AAR gives you an indication of how quickly your customers are completing their payments, so you can make better decisions about when to issue new invoices and to better plan for cash flow. It’s also important to note that AAR isn’t just a numerical figure, it’s a window into the performance of your business as a whole. Knowing your AAR can help you improve processes and maximize profits.