Accounts Receivable

Accounts receivable are legally enforceable claims for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for.
These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. These may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes.
Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit. In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer, who, in turn, must pay it within an established timeframe, called credit terms[citation needed] or payment terms.

The sales a business has made.
The amount of money received for goods or services.
The amount of money owed at the end of each month varies (debtors).

The accounts receivable team is in charge of receiving funds on behalf of a company and applying it towards their current pending balances.
Collections and cashiering teams are part of the accounts receivable department.

While the collections department seeks the debtor, the cashiering team applies the monies received.
Accounts Receivable KPI's
Reduction in average days to pay
Reduction in average days to pay
Reduction in days sales outstanding (DSO)
Reduction in average outstanding receivable
Decreased cost of credit
Decreased time from sale to invoice delivery
Improved cash forecast accuracy
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