Accounts receivable, or AR, refers to a company’s anticipated payments for goods or services supplied to customers. Simply put, AR is the money that your customers owe you — generally in the form of invoices. It is the exact opposite of accounts payable or AP, where you owe money to someone else.
ARs are legally enforceable and must be paid within the stipulated time frame. AR is found in the current assets section of a company’s balance sheet and is reflected as an asset. Learn more about accounts payable software and accounts payable services offered by GEP.