Accounting Accounts Receivable is the term used to describe money owed by customers for products and services supplied. Managing accounts receivables effectively is essential for any business as it determines the amount of working capital a company has in its day-to-day operations. Keeping accurate records of accounts receivable enables businesses to track who owes them money and helps them estimate incoming cash flow. It also helps businesses identify potential risks, such as late or non-payment, so they can take pro-active steps to prevent them. Finally, having accounts receivable system in place ensures that customers are billed correctly and efficiently.