receivables

Receivables are amounts of money that a business is owed by its customers for goods or services provided on credit. Essentially, they represent the outstanding invoices or bills that clients have yet to pay. Managing receivables is important for a company's cash flow, as timely collection ensures the business has enough funds to operate effectively. Think of receivables as the company's future income that is expected to be received in the near term, reflecting sales made but not yet settled with cash.