Accounts Receivable & Payable
AR / AP
In one sentenceReceivable is money customers owe you; payable is money you owe suppliers. The gap between them shapes your cash flow.
What it means
AR grows when you deliver first and get paid later. AP grows when you buy now and pay later. Collecting AR faster and paying AP on time (not early) keeps cash healthy. DSO (days sales outstanding) measures how many days it takes, on average, to get paid.
How to use it
- Send invoices the day work is delivered, with clear due dates and easy payment links.
- Automate payment reminders.
How AI helps
AI can draft polite, firm payment reminders and summarize your aging report (who owes what, and for how long).
Related terms
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