Accounts Receivable Accounting is the practice of tracking, recording, and collecting payments owed to an organization by its customers. This type of accounting generally involves creating invoices and accounts payable documents, keeping track of customer payments, and managing collections. It’s an essential part of any business that provides goods or services on credit. When managed properly, Accounts Receivable Accounting can greatly improve a company’s financial performance – but it requires careful monitoring, organization, and diligence. If handled incorrectly, it can cost companies time, money, and reputation.