Accounting

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit.

Accounts receivable (often called sundry debtors in India) is the total your customers owe you for credit sales not yet collected. It is an asset on the balance sheet and a key driver of working capital — money tied up in receivables is cash you cannot yet use.

Receivables ageing — grouping outstanding amounts by how overdue they are — helps prioritise collections before they turn into bad debts.

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