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Accounts Receivable
What it measures
The total dollar amount customers currently owe you for work you’ve already done but haven’t been paid for yet.
Why it matters
Accounts Receivable is money you’ve earned but haven’t received yet. Too high means cash is tied up in unpaid invoices and you may need to tighten collections. Too low can be a signal that sales have slowed or jobs have gotten smaller. The goal is to keep it in a healthy range.
Want help putting this number to work in your business? That’s exactly the kind of thing we set up together in coaching.