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Accounts

Accounts receivable

Accounts receivable is money customers owe a business for goods or services already delivered.

Reviewed by the Booksmrt bookkeeping teamLast reviewed 2026-07-27

How it works in the books

The receivable ledger tracks invoices, payments, credits, and aging. It helps separate earned revenue from collected cash.

Example

A $4,000 consulting invoice sent in June and paid in July is a June receivable under accrual accounting.

What can go wrong

Deposits must be matched to customer invoices or receivables may stay open after the cash arrives.

Compare Accounts receivable

Accounts payable vs. accounts receivableAccounts payable tracks obligations to vendors; accounts receivable tracks claims against customers. Both are balance-sheet accounts and both require invoice-level matching under accrual accounting.

Sources

Educational information only. Booksmrt provides bookkeeping services, not tax, legal, audit, or investment advice. Confirm material accounting and tax decisions with the appropriate professional.