Accounts Receivable (AR) is an important bookkeeping term used to describe money owed by customers to a business. It’s the amount that the company expects to receive from sales on credit—sales that have already been processed, but the customer hasn’t finalized payment yet. Understanding the terminologies and concepts related to Accounts Receivable can help keep your business running smoothly! AR terms include “billing,” which involves invoicing customers for their purchases; “collections,” which refers to the process of reminding and attempting to collect payment from slow/non-paying customers; and “account reconciliation” which involves comparing the amounts due to those received – ensuring all payments are up-to-date. Taking a proactive approach to these processes will help you stay on top of money owed to your business and minimize late payments!