Accounts receivable are the invoices belonging to a company that still need to be paid at the time of reporting. It’s the unpaid money, the stuff in play; it’s the threat of cement shoes if you don’t get to getting the boss his money, capiche?
Accounts receivable is very similar to a line of credit, as ultimately, it represents an agreement between the two parties of the company and the customer. The company provides a good or service before payment and an invoice with a due date. The customer has the time to collect the money while still being able to use the product in question.
This trust helps to foster healthy relationships between companies and clients, leading to a greater chance of them being a return customer, and if you break that trust, then don’t be surprised when we end up breaking your-
(This employee has been terminated)
*no employee was terminated during the writing of this piece.