What is accounts receivable?
Accounts receivable: Money customers owe your business for work already done or goods already delivered.
Example
Rosa caters a conference for $9,000 in week 3. The client pays 45 days after the event, in week 10. Until then the $9,000 is accounts receivable: earned, but not in her account.
Made-up people and numbers from the cases of our course; the math is real.
A common mistake
Spending money that customers still owe. It is in the profit of the month, not in the bank.
Try it with your own numbers: Cash runway calculator (free, no sign-up).
Practise this in block 1
Block 1 of Ownwise is free, with no account needed to start: short lessons on costs, margin and break-even, then a made-up case where you make the decisions. This term has its own lessons in block 3, part of the paid practice pack.