oboloo Glossary

Account Receivables

oboloo Glossary

Account Receivables

Account Receivables is the amount of money owed to a business by its customers for goods or services purchased on credit. It is one of the most important elements of a company’s financial statement, and is the first step in what eventually becomes cash flow. Keeping an accurate record of account receivables can help businesses maintain financial stability, especially during busy seasons when sales may be higher than usual. Properly managing and collecting account receivables will help ensure that a business’s cash flow remains steady and reliable over time.