Accounts Receivable Aging

Accounts receivable aging is a financial tool used by businesses to track the status of money owed by customers. It categorizes unpaid invoices based on how long they’ve been outstanding—such as 0-30 days, 31-60 days, or over 60 days. This helps companies assess the likelihood of collecting payments, prioritize collection efforts, and manage cash flow effectively. Essentially, it provides a clear view of which invoices are overdue, how overdue they are, and aids in maintaining financial health.