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Aged Receivables Report

This guide explains how the Aged Receivables Report works in plain language. Whether you're an accountant or a business owner, this report is your key to managing cash flow and ensuring you get paid on time.

What is the Aged Receivables Report?

Think of the Aged Receivables Report as a "To-Do List" for collecting payments. It shows you exactly which customers owe you money and, more importantly, how long they have owed it.

Why does this matter?

  1. Cash Flow: Helps you predict when money will come in.
  2. Credit Control: Identifies customers who are late so you can follow up.
  3. Bad Debt Prevention: Catching overdue payments early prevents them from becoming uncollectible.

Where to Find It

Navigate to: Accounting → Reports → Aged Receivables

💡 Tip: Look for the Help button in the top-right corner—it opens this guide!

Understanding the Report

Allowed to see the report, you need to understand the concept of Aging Buckets. These separate debts by how old they are based on the Due Date of the invoice.

Bucket What it Means Action Needed
Current Invoices not yet due. None yet (wait for payment).
1-30 Days 1 to 30 days past the due date. Send a friendly reminder.
31-60 Days 31 to 60 days past due. Call the customer; check for issues.
61-90 Days 61 to 90 days past due. Serious follow-up; possibly pause services.
90+ Days More than 90 days overdue. Risk of bad debt; consider collection agency or legal action.

Using the Report Filters

To get the most out of the report, use the available filters:

As Of Date

This determines the "snapshot" date for the report.

  • Scenario: Today is Feb 15, but you want to see what your receivables looked like on Dec 31 for year-end closing. Set the "As Of Date" to Dec 31.

Making It Make Sense: A Real Example

The Situation: You run a wholesale business. You check the Aged Receivables Report on April 1st.

What you see:

  • Customer A: owes $500 in the Current bucket.
    • Translation: They bought something recently, and the bill isn't due yet. All good!
  • Customer B: owes $1,000 in the 31-60 Days bucket.
    • Translation: Their bill was due in February. They are late! You need to call them.

Troubleshooting

Q: Why isn't an invoice showing up?

A: Check the following:

  1. Is the invoice Posted? Draft invoices don't appear in financial reports.
  2. Is the As Of Date correct? If the invoice date is after the "As Of Date", it won't show.
  3. Has it been Paid? If you recorded a payment, the balance will be zero (or reduced).

Q: Why does a customer have a negative balance?

A: This usually means they have overpaid or have a Credit Note that hasn't been applied to an invoice yet. It means you owe them money (or services).

Best Practices

  • Review Weekly: Make this report part of your Monday morning routine.
  • Act Fast: The longer a debt sits, the harder it is to collect.
  • Reconcile: Ensure the "Grand Total" matches the "Accounts Receivable" balance on your Balance Sheet.