Accounts receivable and payable are where working capital lives. AR is cash your customers owe you - the longer they take to pay, the longer your cash is trapped. AP is cash you owe vendors - the longer you take to pay (within terms), the more float you keep.

Effective AR management isn't just about collecting faster - it's about collecting strategically. Some customers are worth more patience; others need pressure. AP management isn't about paying as slow as possible - it's about optimizing cash while maintaining vendor relationships.

In this topic, you'll learn to analyze AR and AP aging, build effective collections playbooks, negotiate better terms with vendors, and balance cash optimization with relationship preservation.