Average Accounts Receivable (AAR) is a business metric used to measure the average amount of unpaid customer invoices at any given point in time. It’s a reflection of how successful a company is at collecting payments from its customers quickly, and can be an indicator of future cash flow problems. AAR is calculated by taking the total amount of outstanding receivables, divided by the number of customers, or by the number of days of sales outstanding. This information can then be used to make better decisions about credit policies and debt collection practices.