Accounts Receivable

Definition ∞ Accounts Receivable represents the money owed to a company by its customers for goods or services delivered. These are short-term assets reflecting sales made on credit. Effective management of accounts receivable is vital for a company’s liquidity and financial health. In digital asset environments, this can include outstanding payments denominated in cryptocurrencies or stablecoins.
Context ∞ The digital asset domain introduces both new opportunities and complexities for managing accounts receivable, particularly with the potential for real-time settlement using blockchain. Concerns persist regarding the volatility of certain digital assets and the regulatory treatment of tokenized debt instruments. Future developments may involve decentralized finance protocols offering new methods for invoice financing and credit assessment.