Accounts Receivable is the money that a business has coming in from customers. It’s the amount of money owed to the company for goods and services provided, but which have not yet been paid for. This is an important asset for businesses, because it represents potential revenue that can be realized in the future. Think of accounts receivable as an “invoice” waiting to be paid. When customers finally pay their bills, accounts receivable turns into actual revenue for the business. So, in a nutshell, Accounts Receivable is Revenue in waiting!