Ledger Accounts Receivable (AR) is an accounting term that refers to the amount of money owed to a business by its customers, clients, or other entities. AR is recorded in the company’s general ledger and helps track incoming payments and provide an up-to-date evaluation of debts owed. It can also be used to assess risk and create credit policies. Companies use AR tracking to accurately forecast their cash flow and plan for upcoming expenses. No matter how large or small your enterprise may be, having accurate AR records is essential to running a successful business.