Balance in accounts receivable is an important business term that measures the total value of money owed to a company by its customers. It’s critical for businesses to maintain accurate records which accurately capture the amount owed by each customer, as this number will directly impact a company’s cash flow and overall financial health. In essence, it’s the difference between what customers owe and what the company has collected from them in terms of payment. Keeping track of balance in accounts receivable is essential for any business seeking to maintain good financial health and peace of mind.