Money owed to your business by customers for goods or services already delivered. Tracking AR accurately is critical in the UAE, where delayed payments from clients can create cash flow issues — particularly for SMEs and free zone companies.
AR sits on the asset side of your balance sheet. In the UAE, delayed client payments are an acute problem — particularly for SMEs and free zone companies dealing with large corporate or government clients on 60–90 day payment terms. Tracking AR accurately is not just good practice; it is critical for cash flow forecasting and for understanding whether your business is actually profitable or just busy.
Watch out: High AR on a growing business can mask a cash crisis. A company showing AED 2M in revenue but carrying AED 1.8M in uncollected AR is in a far weaker position than the P&L suggests.
See also: Accounts Payable (AP), Cash Flow, Working Capital
