Accounts Receivable (AR) is a critical component of a company's financial management, representing the money owed to the business by its customers for goods or services provided on credit. It's essentially the opposite of accounts payable, which represents money owed by the company to its suppliers or vendors. Accounts receivable management is essential for optimizing working capital, reducing the risk of bad debts, and maximizing the company's overall financial performance. It requires close attention to customer relationships, effective credit management practices, and proactive follow-up on outstanding receivables.