Accounts Receivable

Money owed to your business by customers for products or services delivered but not yet paid for. An asset on your balance sheet.

High accounts receivable with slow collection kills cash flow even when sales are strong. Tracking it and chasing overdue invoices is one of the most important finance habits for founders.

A founder has sent £8,000 in invoices for consulting work. £5,000 are overdue by 30+ days. She implements a payment reminder sequence and collects 80% within the week.