Accounts Receivable (AR) represents the money your customers owe you for goods or services delivered. Poor AR practices can create cash flow bottlenecks, delay growth, and even put your business at risk. Effective cash management relies on timely collection of receivables, ensuring you have the funds to pay employees, reinvest, and handle unexpected expenses. According to Investopedia, AR is one of the most critical measures of a business’s liquidity and operational health.