Accounts receivable
Accounts receivable (AR) represents the money owed to a business by customers for products or services already delivered but not yet paid.
Accounts receivable (AR) is the total amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for. It is recorded as a current asset on the balance sheet.
Example: A SaaS company invoices a customer $5,000 for an annual subscription. Until the customer pays, this $5,000 is recorded as accounts receivable.
