Definition
An aging report is a summary of unpaid invoices grouped by how long they have been outstanding, typically in buckets such as current, 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days past due. It shows which clients owe the most and which invoices need urgent follow-up.
Also called: AR aging, Accounts receivable aging, Debtor aging
Aging report in practice
Run the aging report weekly. Anything in the 31 to 60 bucket should already have had a reminder; anything over 90 days is at serious risk of becoming bad debt.
Frequently Asked Questions
What does "current" mean on an aging report?
Invoices that have been issued but are not yet past their due date. They are owed but not late.