Accounts Receivable refers to money owed to a company by its customers for goods and services already delivered. It’s an important part of the overall revenue cycle, which requires careful tracking and management in order to ensure timely payments and optimized cash flow. The account receivable process flow involves four key steps: creating invoices, sending invoices to customers, receiving customer payments, and recording payments. At each step, appropriate accounts must be updated in order to accurately track the money flowing in and out of the business. By keeping track of your Accounts Receivable, you can maximize cash flow and minimize potential losses due to unpaid invoices.