When a business can provide evidence of debts that have not been payed by customers the have what is called accounts receivable. This can be seen as an asset in there accounting records. Accounts Receivable deciphers the amount of money that customer or client still owes to a business. When the business has provided a product or service they generated a pill of sale which is given to the customer.
Accounts Receivable takes note of the number of sales that have been made, and the and the amount of funds that has been compensated for. They also know the amount that is still outstanding at the end of the month. Most companies employ people solely for the purpose of collecting on unpaid bills. They are called collections. When an outstanding bill is payed they are calculated into the accounting records by the cashiering team.
these task are often time outsourced to Account Receivable professionals. This practice is referred to as AR financing.
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