Financial & Legal

The money a business should receive from its clients as a consequence of sales of products or services is referred to in accounting as "Accounts payable outsourcing companies," or simply "A/R." It is the sum of money for which you have issued invoices but have not yet been paid. When an invoice is paid, your accounts receivable are reduced and your cash account are credited.

The most accurate predictor of your company's revenue and a key factor in assessing profitability is accounts receivable. Since it represents money entering the organization, it is viewed as an asset.

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