Glossary term
What is Accounts receivable?
Short answer
Accounts receivable is money that customers owe you for work you already finished and billed.
Accounts receivable, explained for tree service owners
If you cut a tree and send an invoice that is not yet paid, that amount is part of your receivables. A tree company can look busy and still run short of cash if too many invoices wait too long. Review the list every week, send reminders on a schedule and call anyone who is late. Quick invoicing and easy payment options, like text-to-pay, shorten the wait. Keep notes on each late account so you know who needs a call and who just forgot.
Related terms
- Text-to-pay
Text-to-pay is a way for a business to send a payment request by text message, so the customer can pay by card through a secure link on…
- Deductible
A deductible is the amount you pay yourself on a claim before your insurance starts to pay.
- Progress payment
A progress payment is a partial payment made as a long job moves along, instead of one payment at the end.
- Working capital
Working capital is the cash a business has available to run day to day, after paying short-term bills.
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