Accounts Receivable (AR) in Jamaica refers to amounts owed to a business, organisation, or individual for goods supplied or services rendered on credit, forming a key component of financial management, accounting practice, and commercial activity across the economy. It represents a legal claim to future payment and is recorded as a current asset on the balance sheet, reflecting expected inflows of cash within a defined period.
In the Jamaican context, AR plays a particularly important role in sectors such as real estate, construction, professional services, utilities, and trade, where transactions are frequently conducted on deferred payment terms. Beyond its technical accounting definition, AR is closely tied to issues of cash flow, credit risk, contractual enforcement, and economic stability, especially within small and medium-sized enterprises (SMEs), which form a substantial part of the national economy.
