10.1 What are 'Accounts Receivable'?
‘Accounts Receivable’ is the term used to describe the list of people, firms and other entities that owe you money for services rendered and products provided. A service becomes a ‘receivable’ once it has been invoiced or, in other words, once the person or entity who owes you the money is sent a piece of paper or an electronic file outlining the details – basically being notified that they owe the funds.
Items that have not yet appeared on an invoice/electronic file are not deemed to be Accounts Receivable since the paying parties don’t yet know exactly what is owed.
This section will help you understand how Practice Perfect can help you monitor and report your Accounts Receivable.