Who owes you money?
When you send an invoice, you're extending credit to your customer and trusting them to pay. But the longer an invoice goes unpaid, the harder it becomes to collect. The Accounts Receivable Aging report shows every unpaid invoice in your system, organised by customer and grouped by how long each invoice has been outstanding.
This report is essential for managing your cash flow. Money sitting in unpaid invoices is money you can't use to pay your own bills, invest in growth, or take home as profit.
Why the Accounts Receivable Aging Matters
Business owners use this report to:
- Identify overdue invoices by seeing exactly which customers haven't paid and for how long
- Prioritise collection efforts by focusing on the oldest and largest outstanding amounts first
- Spot problem customers who consistently pay late or have multiple overdue invoices
- Understand cash flow gaps by seeing how much money is tied up in unpaid invoices
- Assess credit risk by evaluating whether you should continue extending credit to certain customers
Accessing the Report
To view your Accounts Receivable Aging report, navigate to Finance → Reports and select Accounts Receivable Aging.
At the top of the report, you can select your date:
- Today shows all unpaid invoices as of the current date
- Custom lets you select any specific date to see what was outstanding at that point in time
Use the Download button in the top right corner to export the report for your records or to share with your team.
Understanding the Report Structure
The report displays unpaid invoices in a table with the following columns:
- Customer is the name of the customer who owes you money. Click the name to view their details.
- Invoice is the invoice number. Click it to open that specific invoice.
- Due Date is when the invoice was due to be paid.
- Current shows invoices that are not yet past their due date.
- 1-30 Days shows invoices that are 1 to 30 days past due.
- 31-60 Days shows invoices that are 31 to 60 days past due.
- 61-90 Days shows invoices that are 61 to 90 days past due.
- 90+ Days shows invoices that are more than 90 days past due.
- Total shows the total amount owed by that customer across all aging buckets.
Reading the Report
Each customer's invoices are grouped together, with a Customer Total row showing how much that customer owes in each aging bucket and in total.
At the bottom of the report, the Grand Total row shows the combined outstanding amount across all customers for each aging bucket.
The Percentage Breakdown row shows what proportion of your total receivables falls into each aging bucket. This gives you a quick view of the health of your receivables. For example, if 56.7% of your receivables are in the 90+ Days column, more than half your outstanding money has been owed for over three months.
Multi-Currency Invoices
If you invoice in multiple currencies, foreign currency amounts are displayed with an asterisk (*Estimated rate) and show the converted amount in your default currency below in parentheses. For example, an invoice might show 12,839.00 with (USD 10,000.00) underneath, indicating the original invoice was in USD.
What the Aging Buckets Tell You
The further right an invoice appears on the report, the longer it's been overdue:
- Current means the invoice isn't due yet. No action needed.
- 1-30 Days means the invoice is slightly overdue. A gentle reminder may be appropriate.
- 31-60 Days means the invoice is significantly overdue. Follow-up is recommended.
- 61-90 Days means the invoice is seriously overdue. More urgent collection efforts may be needed.
- 90+ Days means the invoice has been outstanding for over three months. These are the hardest to collect and may need to be written off if uncollectable.
The longer an invoice remains unpaid, the less likely you are to collect it. Industry research suggests that invoices over 90 days old have a significantly lower collection rate than newer invoices.
How to Use This Report
Weekly review: Check this report at least once a week to stay on top of overdue invoices. The sooner you follow up, the more likely you are to get paid.
Focus on the oldest first: Invoices in the 90+ Days column need immediate attention. These have the highest risk of becoming uncollectable.
Look for patterns: If a customer appears multiple times with invoices in older buckets, they may be a credit risk. Consider requiring upfront payment or shorter payment terms for future work.
Monitor the percentage breakdown: A healthy receivables profile has most money in the Current and 1-30 Days columns. If large percentages are in the older buckets, your overall collection process may need attention.
Frequently Asked Questions
The aging bucket is calculated based on the number of days between the invoice's due date and the report date. An invoice due on 1 December that remains unpaid on 31 December would appear in the 1-30 Days column because it's 30 days past due.
Current shows invoices that have been issued but are not yet past their due date. These invoices are outstanding but not overdue. For example, if an invoice is due on 15 January and today is 10 January, it appears in the Current column.
If a customer has made a partial payment on an invoice, only the remaining unpaid balance appears on this report. The aging is still calculated from the original due date.
What's Next?
Now that you understand your Accounts Receivable Aging, explore these related articles:
- Accounts Payable Aging to see what you owe to suppliers
- Cash Flow Statement to see how receivables affect your cash position
- Recording a Payment to record payments when customers pay their invoices