Accounts Receivable Ageing

A report that categorises outstanding customer invoices by how long they have been overdue, typically in buckets of 0 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days.

An ageing report reveals which invoices are at risk of becoming bad debt before it is too late to act. Founders who review it regularly chase overdue payments earlier and protect their cash flow more effectively.

A founder runs her ageing report and discovers three invoices totalling £4,200 are over 60 days past due. She immediately sends formal follow-up emails and puts one client on a payment plan, recovering £2,800 within a week that she had mentally written off.