> ## Documentation Index
> Fetch the complete documentation index at: https://docs.techfootintl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# AR Overview

> Understanding Accounts Receivable (AR) and customer-side accounting.

## What is Accounts Receivable?

**Accounts Receivable (AR)** refers to the money that customers owe to your business for goods or services that have been delivered but not yet paid for. It represents the customer-side of your accounting system.

In simple terms, AR helps you answer the question: **"Who needs to pay us?"**

### What AR Includes:

* **Customer Invoices:** Detailed bills sent to customers for services or products.
* **Money Customers Owe:** The total outstanding debt from your customer base.
* **Customer Payments:** Records of money received from customers.
* **Customer Balances:** The current standing of each customer (whether they are in credit or owe money).
* **Receivables Tracking:** Monitoring aging invoices to ensure timely collection.

### The AR Workflow

The standard flow for Accounts Receivable follows these steps:

1. **Create Customer Invoice:** Generate a bill for the services provided.
2. **Customer Receives Invoice:** The invoice is sent to the customer for review.
3. **Customer Makes Payment:** The customer pays the outstanding amount via their preferred method.
4. **Balance Cleared:** The payment is recorded, and the customer's balance is updated or cleared.