---
title: "What is meant by account receivable?"  
description: "What is meant by account receivable?"  
author: "mns group"  
published: 2026-09-25  
updated: 2026-10-03  
canonical: https://answers.mindstick.com/qa/117281/what-is-meant-by-account-receivable  
category: "business & finance"  
tags: ["finance"]  
reading_time: 1 minute  

---

# What is meant by account receivable?

## Answers

### Answer by user

**Accounts receivable** refers to the money a business is entitled to receive from customers for goods or services that have already been provided but not yet paid for. For example, if a company sells products worth ₹2 lakh on 30-day credit terms, the ₹2 lakh becomes an account receivable until the customer makes the payment.

Effective **Accounts Receivable Management** helps businesses monitor outstanding invoices, track payment due dates, follow up with customers, and manage overdue accounts. Strong receivables management can improve cash flow, support working capital, and reduce payment delays.

MNS Credit Management Group provides professional **Accounts Receivable Management Services** to help businesses monitor and manage outstanding commercial receivables. Our support may include invoice tracking, payment follow-ups, ageing analysis, customer communication, reconciliation support, dispute coordination, and collection management.


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