What is an accounts receivable aging report?

An accounts receivable aging report lists your unpaid invoices and groups them by how far past their due date they are. The usual columns are current (not yet due), 1–30 days overdue, 31–60, 61–90 and over 90. Each row is a customer, and the totals at the bottom show how much of what you are owed is getting old.

How to read it

Start from the right. Money in the 90+ column is the least likely to come in, and the longer it sits the harder it gets. A healthy report has most of its total in current and 1–30. If the older columns are growing month on month, your collections are falling behind your sales even if revenue looks fine.

Then look for patterns. One customer spread across several columns usually has a process problem on their side, a new approver or a missing supplier record, worth one phone call rather than more emails.

What to do about each column

• Current: check the invoices reached whoever pays them and have any PO number they need.
• 1–30 days: a short reminder, and a question about when it is scheduled to be paid.
• 31–60 days: ask what is holding it up. A month late is usually a decision, a dispute or a lost invoice, not forgetfulness.
• 61–90 days: change the channel. Call, or write to someone more senior or to their finance team.
• 90+ days: decide what you will actually do, a payment plan, a final notice, or writing it off, and do it.

Aging report vs DSO

DSO gives you one average for how long customers take to pay. An aging report shows the spread behind it, which invoices and which customers. Use DSO to see whether things are getting better or worse, and the aging report to decide who to chase today.