The Ending Accounts Receivable Formula is a simple equation used by businesses to determine the amount of cash they are owed by customers at the end of an accounting period. It’s calculated by taking the beginning Accounts Receivable balance and adding new sales, then subtracting payments made on existing invoices. This allows business owners to get a quick snapshot of their current Accounts Receivable situation and make appropriate financial decisions accordingly. Knowing your Ending Accounts Receivable can help you identify potential cash flow issues and take corrective action quickly.