Accounts receivable arise when you extend credit to your customers, typically if you sell BTB. It's important to account for them because if you extend credit you don't get cash when you sell your products which creates an additional liquidity need for you.

Please watch our Youtube video for a detailed walk-through explaining how to calculate accounts receivable for a pre-revenue startup. We will discuss how to perform the calculation even if you are pre-revenue as well as how to formulate assumptions.

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