Accounts receivables (AR) represent the outstanding invoices a company has or the money clients owe. This crucial component of a firm's balance sheet indicates services rendered or goods delivered on credit yet to be paid for. AR is a legal claim: money the company expects to receive within a short period, typically within a year. Efficient AR management is vital for maintaining cash flow, ensuring business sustainability, and fostering customer relationships by providing clear terms and prompt follow-ups on outstanding paymentshttps://www.investopedia.com/terms/a/accountsreceivable.asp

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