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Can accounts receivable affect cash flow?

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发表于 2024-9-30 19:52:40 | 显示全部楼层 |阅读模式
Certainly, accounts receivable influence cash flow since they represent money to be received for goods or services that has already been sold to customers. While, it is a form of asset, it is still money that has not been received yet hence making it a very risky account. If customers pay the company slowly, this is a problem as the company will not be in direct control of these cash – it needs cash for operations and could be in trouble if payments are not made in a timely fashion. Receivables collection to ensure that prompt payment is received to enable meet the company's many obligations like bills, employees, and business investments.
Read more:

Is Account Receivable An Asset


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