What is an accounts receivable aging report?

Accounts receivables are invoices that a company issues to its customers, and an accounts receivable aging report details how old outstanding invoices are. It is a tool that allows a company to manage its credit risk.

Accounts receivable aging reports also help a business manage collections. By having a report that details invoices that are late, a company can easily identify when it should send a payment reminder.

The report usually includes a summary of receivables organized by the amount of time outstanding. Common groupings are 30 days, 31 to 60 days, 61 to 90 days, and invoices that have been outstanding for more than 90 days.