Accounts receivable (AR)
Money customers owe you for work already delivered.
Last reviewed 12 September 2026
Receivables are revenue you have earned but cannot spend. A growing AR balance with flat cash is the clearest early warning of a collections problem.
Age the list: 0–30, 31–60, 61–90, 90+. Anything past 90 days needs a phone call, not another email.
Frequently asked
What is accounts receivable (ar)?+
Money customers owe you for work already delivered. Receivables are revenue you have earned but cannot spend. A growing AR balance with flat cash is the clearest early warning of a collections problem. Age the list: 0–30, 31–60, 61–90, 90+. Anything past 90 days needs a phone call, not another email.
Why does accounts receivable (ar) matter for founders?+
Age the list: 0–30, 31–60, 61–90, 90+. Anything past 90 days needs a phone call, not another email.
Related terms
DSO (days sales outstanding)
The average number of days it takes to collect an invoice.
Cash gap
A period when money leaves faster than it arrives and your balance goes negative.
Working capital
Short-term assets minus short-term liabilities — the money running your operations.
Accounts payable (AP)
Money you owe suppliers for goods or services already received.
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