What is an accounts receivable aging report?

An accounts receivable aging report is a table that lists every unpaid customer invoice and groups it by how long it has been outstanding or overdue. It shows at a glance which clients are paying on time and which invoices need follow-up.

How it works

The report starts from your unpaid invoices, which together make up your accounts receivable. For each one, it compares today’s date with the due date and places the amount in a bucket.

Common buckets are:

• Current: not yet due.
• 1 to 30 days past due.
• 31 to 60 days past due.
• 61 to 90 days past due.
• Over 90 days past due.

Some reports age from the invoice date instead of the due date. Pick one method and stick with it, because switching makes month-to-month comparison misleading.

The older an invoice gets, the harder it usually is to collect. That is why the right-hand buckets matter most. Invoices in the oldest bucket are candidates for a firm reminder sequence (dunning), a payment plan, or eventually a write-off.

Example

Here is a small consultancy’s aging report as of November 30.

What to do with it

1. Call or write to the oldest bucket first.
2. Check whether a client has a pattern, such as always paying 20 days late, and adjust their terms or ask for a deposit.
3. Compare your totals month to month. A growing past-due share is an early warning.
4. Pair it with days sales outstanding to see the trend in one number.

If you need to add a late fee to an overdue invoice, try the late fee calculator. PayToMe is in public beta: you can send invoices and see which are unpaid in the app. An aging view with smart reminders is in development. You can sign in to PayToMe today.

Related terms

• Accounts receivable: the balance the report breaks down.
• Days sales outstanding: average collection time.
• Dunning: the reminder process for overdue invoices.
• Write-off: removing an invoice you will not collect.