1. What are 4 things you can find on an aging report?
An aging report provides key insights into accounts receivable, including past-due amounts, the duration invoices have been overdue, customer risk levels, and a prioritized collections worklist. This allows collectors to focus on high-risk customers and improve cash flow.
In addition to overdue invoices, the aging report categorizes customers into aging buckets (e.g., 30, 60, 90 days past due), highlights customer risk based on outstanding amounts, and displays account history. Collectors can also add notes and organize collection efforts more effectively.
2. What is included in an aging report?
An aging report includes overdue invoices, their amounts, and the length of time they’ve been outstanding, typically categorized into 30, 60, and 90-day aging buckets. It helps prioritize collections based on risk and overdue amounts, offering a clear view of receivables health.
The report details customer risk levels, overdue amounts, and payment history. Collectors can access a prioritized worklist, helping them focus on customers based on risk class and aging. This ensures that collection efforts target the most critical overdue accounts.
