What is Accounts Receivable?
Accounts receivable (AR) represents the money owed to a business by its customers for goods or services delivered on credit. It is recorded as an asset on the company’s balance sheet, reflecting the company’s right to receive payment in the future. Effective management of accounts receivable is crucial for maintaining cash flow, liquidity, and overall financial health.
The accounts receivable process typically involves issuing an invoice to the customer after delivering the product or service. The invoice specifies the payment terms, including the amount due, payment deadline, and any applicable discounts for early payment or penalties for late payment. Key aspects of accounts receivable management include establishing credit policies, ensuring timely and accurate invoicing, implementing effective collections procedures, and regularly monitoring accounts receivable aging to identify potential issues and take corrective actions.
Maintaining a healthy accounts receivable balance is essential for sustaining cash flow and supporting day-to-day operations. Businesses should aim to minimize the time it takes to convert receivables into cash, known as Days Sales Outstanding (DSO). Reducing DSO improves liquidity and reduces the risk of bad debts. Technological solutions, such as accounting software and automated invoicing systems, can enhance the efficiency and accuracy of accounts receivable management. By closely monitoring and managing AR, businesses can ensure a steady flow of funds and reduce the likelihood of cash flow problems.
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Absorption Pricing
Accounts Receivable
ACH
Advance Billing
AI Agent Pricing
AI Model Pricing
AI Token Pricing
AISP
ARR
ASC 606
Automated Investment Services
Automated Invoicing
Basing Point Pricing
Basket-based Pricing
Billing Cycle
Billing Engine
Captive Product
Channel Incentives
Channel Pricing
Choke Price
Churn
Clearing and Settlement
Commercial Pricing
Competitive Pricing
Consolidated Billing
Consumption Based Pricing
Contribution Margin-Based Pricing
Conversation Based Pricing
Cost Plus Pricing
Cost-Based Pricing
CPQ
Customer Based Pricing
Customer Profitability
Deal Management
Deal Pricing Guidance
Deal Pricing Optimization
Decoy Pricing
Deferrred Revenue
Digital Banking
Discount Management
Dual Pricing
Dunning
Dynamic Pricing
Dynamic Pricing Optimization
E-invoicing
E-Money
EBIDTA
Embedded Finance
Enterprise Resource Planning (ERP)
Entitlements
ERP
Feature-Based Pricing
Finance AI
Fintech
Fintech Ecosystem
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Freemium Model
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Generative AI Pricing
Grandfathering
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Hedonic Pricing
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Idempotency
IFRS 15
Insurtech
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Invoice
Invoice Compliance
KYC
Lending-as-a-Service (LaaS)
Lifecycle Pricing
Loss Leader Pricing
Margin Leakage
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Margin Pricing
Marginal Cost Pricing
Market Based Pricing
Metering
Micropayments
Minimum Commit
Minimum Invoice
MRR
Multi-currency Billing
Multi-entity Billing
Neobank
Net Dollar Retention
Odd-Even Pricing
Omnichannel Pricing
Open Banking
Outcome Based Pricing
Overage Charges
Pay What You Want Pricing
Payment Gateway
Payment Processing
Peer-to-peer Lending
Penetration Pricing
PISP
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Price Benchmarking
Price Configuration
Price Elasticity
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Pricing Analytics
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Pricing Engine
Pricing Software
Product Pricing App
Proration
PSD2
PSP
Quotation System
Quote Request
Quote-to-Cash
Quoting
Ramp Up Periods
Real-Time Billing
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Region Based Pricing
RegTech
Revenue Analytics
Revenue Backlog
Revenue Forecasting
Revenue Leakage
Revenue Optimization
Revenue Recognition
SaaS Billing
Sales Enablement
Sales Optimization
Sales Prediction Analysis
SCA
Seat-based Pricing
Self Billing
Smart Metering
Stairstep Pricing
Sticky Stairstep Pricing
Subscription Management
Supply Chain Billing
Tiered Pricing
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Time Based Pricing
Top Tiered Pricing
Total Contract Value
Transaction Monitoring
Usage Metering
Usage-based Pricing
Value Based Pricing
Volume Commitments
Volume Discounts
WealthTech
White-label Banking
Yield Optimization
Why Solvimon
Helping businesses reach the next level
The Solvimon platform is extremely flexible allowing us to bill the most tailored enterprise deals automatically.
Ciaran O'Kane
Head of Finance
Solvimon is not only building the most flexible billing platform in the space but also a truly global platform.
Juan Pablo Ortega
CEO
I was skeptical if there was any solution out there that could relieve the team from an eternity of manual billing. Solvimon impressed me with their flexibility and user-friendliness.
János Mátyásfalvi
CFO
Working with Solvimon is a different experience than working with other vendors. Not only because of the product they offer, but also because of their very senior team that knows what they are talking about.
Steven Burgemeister
Product Lead, Billing