Definition
Money owed to a business by customers for goods or services delivered. AR aging tracks how long invoices have been outstanding — anything past 30 days needs follow-up.
Why it matters
For any business that invoices rather than collects at the point of sale, receivables are where revenue quietly gets stuck. Work is done, the money is earned on paper, but it isn't in the bank until the customer pays, and the longer an invoice ages the less likely it is to be collected in full. Staying on top of who owes what, and following up promptly on overdue invoices, is often the difference between a healthy cash position and constantly waiting to get paid.