oboloo Glossary

Decrease In Accounts Receivable

oboloo Glossary

Decrease In Accounts Receivable

Decrease In Accounts Receivable is a business term used to describe when customers have paid off their debt to a company and the amount owed in accounts receivable has gone down. This is an important metric for businesses since not only does it signify a positive flow of cash, but also indicates that customers are taking responsibility for the money they owe. In other words, if you notice a decrease in your accounts receivable, chances are your customers are following through on payment and you’re finally collecting on previously outstanding debts!