Glossary definition

What is accounts receivable?

Accounts receivable

Accounts receivable is a phrase referring to a company’s invoices that are not yet paid at the time of reporting. Similar to a line of credit extended to a customer, accounts receivable serves as a payment agreement between a company and their client. Though specific terms vary, an account receivable is typically set to be paid anywhere from one day to one year of the invoice date.

A broader accounts receivable definition refers generally to any money owed to a company – any unpaid invoices define accounts receivable of a company.

Subscribe to The Access Group newsletter

Effective 1 June 2021, Sage’s accountant and payroll solutions in Australia will be sold to The Access Group.  If you would like to continue to receive valuable content such as this to optimise your practice or business, please subscribe to The Access Group newsletter.

Subscribe