What is Accounts receivable?
Finance & accounting. A plain-English definition for Australian business owners.
Accounts receivable (AR) refers to amounts owed to a business by customers.
The AR function includes invoicing, payment terms management, collections, and aged debtor reporting. For SMEs, AR is often the largest single working capital line; effective AR management materially affects cash position and operating cash flow.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.