Invoicing glossary
Accounts receivable
Accounts receivable (AR) is the money customers owe a business for goods or services already delivered but not yet paid for.
Accounts receivable: a clear definition
When you send an invoice and the client hasn't paid yet, that amount sits in accounts receivable — it's an asset on your books because it's money you're owed. Once the client pays, it moves from receivable to cash.
Keeping accounts receivable low and current is one of the clearest signs of a healthy business. Sending invoices promptly, stating clear payment terms, and tracking which invoices are still outstanding all shorten the time money spends in AR.
How Invco helps
Invco is an AI invoicing assistant that handles accounts receivable and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.
- Related terms: Accounts payable, Net 30, Overdue invoice
Frequently asked questions
What is accounts receivable?
Accounts receivable (AR) is the money customers owe a business for goods or services already delivered but not yet paid for.
What is accounts payable?
Accounts payable (AP) is the money a business owes its suppliers for goods or services it has received but not yet paid for.
Invoice the easy way with Invco
Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.
Get started — it's free