Account Receivable is Revenue is a business term that refers to the total amount of money a company is owed by its customers, but has not yet collected. It’s simple – when you offer goods and services on credit, your customer is expected to pay the balance due within a certain amount of time. This balance, known as accounts receivable, represents revenue your company has earned but not yet received in cash. Companies often track their accounts receivable as part of their overall cash flow management efforts so they can anticipate any cash shortages or surpluses. Keeping tabs on accounts receivable also helps businesses maintain healthy relationships with their customers which is key for long-term success.