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
