Accounting
What is Accounts Receivable (AR)?
Accounts receivable (AR) represents money owed to a company by customers who have received goods or services on credit. It is recorded as a current asset on the balance sheet.
Explanation
AR management involves issuing invoices, tracking payment status, applying cash receipts, reconciling remittances, and managing overdue accounts. Document work in AR includes matching incoming payments to open invoices, processing remittance advices (which often arrive as PDFs or emails), and reconciling discrepancies between what was invoiced and what was paid. AI automation in AR focuses on cash application (automatically matching payments to invoices), remittance processing (extracting data from remittance PDFs), and exception flagging (identifying short payments, unmatched transactions, and aging issues). Faster cash application directly improves cash flow and reduces DSO (days sales outstanding).
How Rima relates
Rima can automate AR document workflows including remittance processing and cash application matching using configurable Blueprints.
Learn about accounting automationRelated Terms
Bank Reconciliation
The process of matching a company's internal records to its bank statement to identify discrepancies.
Accounts Reconciliation
The process of verifying that two sets of records agree — typically an internal account balance against an external statement.
Invoice Processing
The end-to-end workflow of receiving, validating, approving, and recording supplier invoices.
See it in action
Rima automates the manual document workflows accounting teams spend hours on every week.