Knowledge Library · Component
Accounts Receivable (AR)
What it is
Everything to do with the money your customers owe you — issuing invoices, setting credit terms, and collecting what's due.
Why it matters
A sale isn't real until the cash arrives. When receivables are slow or go uncollected, you've done the work but the money is stuck outside the business — quietly starving day-to-day operations of cash.
What makes it work
- Clear credit terms agreed before you sell
- Accurate invoices sent promptly, with no disputes to slow payment
- Consistent, active follow-up on overdue accounts
- Tracking how long customers actually take to pay (DSO)