What are Current Accounts Receivable?
Current Accounts Receivable measures the amount of money owed to a business by its debtors. The Current Accounts Receivable metric helps to estimate the upcoming revenue and plan cashflow more accurately.
How to calculate Current Accounts Receivable?
outstanding customer invoice 1 + outstanding customer invoice 2 + ... + outstanding customer invoice n = ($) Current Accounts Receivable
Pros:
Tracking your accounts receivable for a certain period of time alongside current accounts payable can help you better plan your cashflow and plan additional team expansion.
Cons:
A high Current Accounts Receivable metric might indicate that a business is incapable of dealing with long-term debtors and thereby losing money. If people or companies don’t pay their bills, they’re considered to be in default.
