One of the most underrated diagnostic tools in small business finance. The accounts aging report tells you which invoices are at risk, which customers are slipping, and which cash you should already be chasing - all from a single view updated weekly.
Definition
Accounts Aging - a report that classifies accounts receivable (or payable) by how long they have been outstanding, typically grouped into 30-day buckets: current, 31-60, 61-90, 90+ days.
Common uses
- Collections prioritization - oldest receivables get the most attention
- Cash flow forecasting - aging informs expected collection timing
- Early warning - aging drift is one of the earliest cash flow signals
Watch out
Receivables that age past 90 days are usually unlikely to be collected without escalation - sometimes only partial collection through write-down. Act earlier rather than later.