A receivable is the amount of money someone owes you. Usually unpaid or partially paid invoices. This is also called AR.
If you sell some goods to a customer on credit, and later on, you invoice them. That amount becomes your Receivable from that person. Vice versa, that amount also becomes the Customer’s Payable towards you.
It is very important to make sure that you don’t forget about Credit Invoices. That you’re reminding customers every now and then about. the pending invoice. And not letting the unpaid time duration of the invoice exceed the credit limit your business has set for that customer, e.g you may have a credit limit of 7 days.
Accounting Softwares like HysabOne help you track Credit/Unpaid/Partially Paid Invoices. HysabOne lets you see Receivables for each client and in-total.
To learn more about HysabOne, click here.
