What is Accounts receivable? Financials for CMO:s episode 2
What is Accounts Receivable? Christopher Engman, CMO/CRO at Proof, guides you through the jungle of financial terms and explains the meaning of accounts receivable.
Accounts receivable means money that you are due, both things that are already invoiced or things that are contracted and to be invoiced. So it’s future payments that are guaranteed in some way. That’s accounts receivable. Liabilities and account receivable are kind of related because liabilities are everything that you have contracted. You have already received invoices or you have in a contract with a supplier that you know you’re guaranteed to have to pay. Liabilities are our outstanding invoices and contracted future invoices.