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Accounts Receivable
Money owed to your business by clients for invoices issued but not yet paid. An asset on the balance sheet.
Accounts receivable (AR) is the total of all unpaid invoices — money clients owe you. It sits on the balance sheet as a current asset because it should convert to cash soon.
Growing AR isn't automatically good news: it can mean sales are up, or that collections are slow. An aging report breaks AR down by how overdue each invoice is.
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