AR glossary
What is Accounts receivable (AR)?
Accounts receivable is the money customers owe you for goods or services you have already delivered on credit. It is an asset on the balance sheet, but it isn’t cash until it’s collected.
Example
You deliver ₹5 L of goods on Net 30 terms. Until the customer pays, that ₹5 L sits in accounts receivable.
Why it matters
For B2B companies that sell on credit, receivables are often the largest current asset. Collecting them faster frees cash for payroll, suppliers and growth without borrowing.
In Creditouch
Creditouch turns your receivables into a daily plan: who to call, which reminders go out, and what the CFO needs to know.
See Collections