Accounts receivable glossary

Clear definitions of the money-collection terms that show up on your invoices, your accounting software, and your overdue accounts. No jargon for its own sake, just what each term means and why it matters to getting paid.

• GlossaryAccounts receivableAccounts receivable (AR) is the money customers owe your business for goods or services already delivered but not yet paid for. It appears as an asset on y
• GlossaryDays sales outstanding (DSO)Days sales outstanding (DSO) is the average number of days it takes your business to collect payment after a sale. A lower DSO means you get paid faster. Y
• GlossaryAccounts receivable aging reportAn accounts receivable aging report groups your unpaid invoices by how overdue they are, usually into buckets like current, 1 to 30 days, 31 to 60 days, an
• GlossaryDunningDunning is the process of systematically communicating with customers to collect overdue payments. A dunning sequence is the series of reminders, from gent
• GlossaryNet 30 (payment terms)Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date. Common variations include Net 15, Net 45, and Net 60. T
• GlossaryLate payment feeA late payment fee is a charge added to an invoice when it is not paid by the due date, meant to compensate for the delay and encourage on-time payment. It
• GlossaryFirst-party collectionsFirst-party collections is when a business collects its own overdue invoices in its own name, rather than selling or handing the debt to a third-party coll
• GlossaryPayment plan (instalment agreement)A payment plan, or instalment agreement, lets a client pay an overdue invoice in scheduled parts instead of all at once. It is a practical way to recover m