Définition
Accounts receivable represent revenue that has been earned (invoice issued) but not yet collected. In accrual accounting, sales are recognised when the service is delivered; the matching receivable sits on the balance sheet until cash comes in.
Key AR metrics: — DSO (Days Sales Outstanding) — average number of days to collect an invoice. Calculated as (AR / Credit Sales) × Days. Lower is better. — Ageing buckets — AR split into 0-30, 31-60, 61-90, 90+ days. Rapidly rising 60+ is a red flag. — AR turnover — how many times a year AR is collected and replaced. High turnover means tight collection.
Healthy AR management involves: clear credit terms, fast invoicing (issue on delivery, not at month-end), automatic payment reminders (dunning), an explicit process for escalation after 30/60/90 days, and reserves for doubtful accounts matched against older buckets.
AR is also a common form of collateral for lending — banks often lend against receivables at 70-85% of book value. And AR can be converted to cash early via factoring (see glossary entry) when cash flow tightens.