Invoicing glossary
Accounts receivable
Accounts receivable (AR) is the money customers owe a business for goods or services already delivered but not yet paid for.
Accounts receivable: a clear definition
When you send an invoice and the client hasn't paid yet, that amount sits in accounts receivable — it's an asset on your books because it's money you're owed. Once the client pays, it moves from receivable to cash.
Keeping accounts receivable low and current is one of the clearest signs of a healthy business. Sending invoices promptly, stating clear payment terms, and tracking which invoices are still outstanding all shorten the time money spends in AR.
Accounts receivable in Invco
The Invco dashboard shows outstanding, overdue and paid totals for each company, so you can see what clients still owe. Invoices move from draft to sent to paid, and you can export everything to CSV.
Invco is invoicing software for people who run more than one company. Design your own invoice template or upload your existing invoice PDF, and Invco calculates subtotals, tax and totals, numbers each invoice sequentially and emails it as a branded PDF from your own address. Plans from $10/month.
Related terms
- Accounts payableAccounts payable (AP) is the money a business owes its suppliers for goods or services it has received but not yet paid for.
- Net 30Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date.
- Overdue invoiceAn overdue invoice is one that hasn't been paid by its due date.
Frequently asked questions
What is accounts receivable?
Accounts receivable (AR) is the money customers owe a business for goods or services already delivered but not yet paid for.
How does Invco show accounts receivable?
The Invco dashboard shows outstanding, overdue and paid totals for each company, so you can see what clients still owe. Invoices move from draft to sent to paid, and you can export everything to CSV.
What is accounts payable?
Accounts payable (AP) is the money a business owes its suppliers for goods or services it has received but not yet paid for.
Invoice the easy way with Invco
Design your invoice template, send branded PDFs from your own email address, and see what's paid and overdue for every company. Plans from $10/month, with a full refund within 7 days.
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