📊 What It Is
The Accounts Receivable (A/R) Aging Report is a tool that shows you which customers owe you money and how long those invoices have been outstanding. It organizes unpaid invoices into categories based on how overdue they are—typically Current, 30 days, 60 days, and 90+ days past due.
It can also include unapplied payments, overpayments, or credits that haven’t been matched to specific invoices—so it’s worth keeping an eye out for those exceptions.
💡 Why It Matters
Timely customer payments are the lifeblood of your business’s cash flow. Reviewing this report on a regular basis can help you:
- Spot trends in late payments
- Identify which customers are consistently behind
- Take action before cash flow issues arise
Plus, it’s a great way to keep your invoicing system in check and avoid surprises at tax time.
👀 What to Look For
- Keep overdue balances within 30 days. The longer the invoice ages, the less likely it is to get paid.
- Watch for customer concentration. Relying too heavily on one or two customers can be risky—especially if they’re slow to pay. A healthy customer mix helps reduce that risk.
✅ What You Can Do
- Follow up consistently. Resend unpaid invoices every 15 days with a polite reminder.
- Be flexible when appropriate. If a customer is struggling, offering a payment plan may help you recover the balance while preserving the relationship.
- Address chronic issues. If a client is repeatedly late or falling behind on multiple invoices, it may be time for a direct conversation. Make sure both sides are aligned on expectations—and that your services still meet their needs.
- For accrual-basis clients: At the end of the fiscal year, double-check that all outstanding invoices are still valid. If an invoice won’t be collected, it may need to be written off to keep financial statements accurate. These invoices will part of your taxable revenue.
📌 Tip: Make it a habit to review your A/R aging report monthly. Set a recurring calendar reminder—it’s a simple step that can help you stay in control of your receivables and support long-term financial health.