Accounts receivable is the money that a business has coming in from its customers. This could be from sales that have already been made, or from services that have been rendered. Usually, businesses give their customers a set amount of time to pay off their invoices, and this is called the credit period.
When a customer doesn’t pay within that credit period, then the account is considered to be overdue. Accounts receivable is important because it’s one of the main sources of revenue for a business. Without it, a business would have a hard time staying afloat. There are a few different ways to manage accounts receivable, but one of the most important things is to make sure that you keep track of who owes you money and when they’re supposed to pay it back.