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Accounting Terms
Aging Report
Definition
A report categorizing accounts receivable by how long invoices have been outstanding.
Overview
Aging reports show which invoices are current, 30 days overdue, 60 days overdue, etc. They help prioritize collection efforts and identify cash flow issues.
Example
An aging report shows: Current ($5,000), 1-30 days ($2,000), 31-60 days ($500), 60+ days ($200).
Best Practices
Review aging reports weekly, follow up on overdue accounts, and adjust credit policies as needed.
Common Mistakes to Avoid
Not reviewing regularly
Ignoring older receivables
Not taking action on overdue accounts
Frequently Asked Questions
How should I use aging reports?
Prioritize collection of older invoices and identify clients with payment issues.