Editing Accounts receivable (section)

== Overview ==

Accounts receivable represents money owed by entities to the firm on the sale of products or services on credit. In most business entities, accounts receivable is typically executed by generating an [[invoice]] and either mailing or [[Electronic billing|electronically]] delivering it to the customer, who, in turn, must pay it within an established timeframe, called ''credit terms''{{citation needed|date=February 2019}} or ''payment terms''.

The accounts receivable team is in charge of receiving funds on behalf of a company and applying it toward their current pending balances. Collections and cashiering teams are part of the accounts receivable department. While the collections department seeks the debtor, the cashiering team applies the monies received. Businesses aim to collect all outstanding invoices before they become overdue. In order to achieve a lower [[Days sales outstanding|DSO]] and better [[working capital]], organizations need a proactive collection strategy to focus on each account.