A/R aging report explained (and what to do about each column)

What the aging report shows

The accounts receivable (A/R) aging report lists everyone who owes you money and splits each balance by how late it is. The summary version has one line per customer:

Customer	Current	1-30	31-60	61-90	Over 90	Total
Harbour Dental	$1,200					$1,200
Northside Builders	$2,000	$3,400				$5,400
Pine Street Cafe	($860)		$860			$0
Kestrel Media				$1,500	$2,150	$3,650
Total	$2,340	$3,400	$860	$1,500	$2,150	$10,250

The detail version lists each open invoice with its date, due date and days overdue. Use the summary to see where to look, and the detail to see what to chase.

How the columns are worked out

Each open invoice goes into one column, based on how many days past its due date it is on the report date:

Current: not yet due. An invoice dated yesterday on net 30 terms is current for another 29 days.
1-30: up to a month past due.
31-60, 61-90: one to two, and two to three months past due.
Over 90: more than three months past due.

Three things follow. First, the due date matters as much as the amount: an invoice with no terms, or the wrong terms, lands in the wrong column. Second, a partly paid invoice ages by its remaining balance. Third, the report is for a date: run it as of the last day of a month and you see the month-end picture, even if payments came in since.

What to do about each column

Column	What it means	What to do
Current	Not due yet	Nothing, except make sure the invoice reached the person who pays it. For large amounts, a friendly note a few days before the due date.
1-30	Late, usually forgotten or in a payment run	A short reminder with the invoice attached. Most of these pay without more.
31-60	A pattern or a problem	Phone call. Ask whether something is wrong with the work or the invoice. Send a statement of all open invoices.
61-90	At risk	Firm letter with a payment date. Consider pausing new work on credit, or asking for payment up front. Agree a payment plan if needed.
Over 90	Unlikely to be paid in full	Decide: payment plan, collection agency, small claims court or write-off. Do not leave it sitting.

The reminder schedule and the wording are covered in how to collect overdue invoices. When a debt really is lost, write it off so your receivables show only money you can expect, including getting back any sales tax or GST/HST you already paid on it.

Negatives and other oddities

Negative amounts are credits: an unapplied payment, an overpayment or an unused credit memo. A customer with a negative and an overdue invoice of the same size has almost certainly paid; the payment just was not matched. Fix it before you chase anyone (see unapplied payments and customer credits).
Very old small amounts are often short payments: a bank fee the customer deducted, a discount they took, or a few cents of exchange difference. Decide whether to chase or clear them.
Projects under one customer are usually shown as separate lines with a customer total. A customer who looks fine overall may have one project far behind.
Invoices in the future. An invoice dated after the report date does not appear. If a total looks low, check the as-of date.

Three numbers worth watching

Share over 60 days. Add the 61-90 and Over 90 columns and divide by the total. In the example, $3,650 of $10,250 is 36%: a warning sign driven by one customer.
Days sales outstanding (DSO). Receivables divided by credit sales for a period, times the days in the period. With $10,250 owed and $25,000 of credit sales in a 30-day month, DSO is about 12 days. Watch the trend rather than the number; the DSO calculator does the arithmetic.
Concentration. If one customer is more than a third of your receivables, their slow payment is your cash-flow problem.

Check that it ties to the balance sheet

The aging report total, as of a date, should equal the Accounts Receivable balance on the balance sheet at the same date. If it does not, something posted to Accounts Receivable without a customer, usually a journal entry. Find it in the A/R register and redo it as a customer invoice, credit memo or payment. Checking this tie at each month-end close keeps your receivables trustworthy, and it is one of the first things an accountant or lender looks at.

In AcboBooks

The A/R Aging Summary has Current, 1-30, 31-60, 61-90 and over-90 columns and a total, as of any date you choose. It ages each invoice by its due date; an invoice without one falls due by the customer's terms, or 30 days after its date. Projects are listed under their customer with a customer total. You can choose which columns to show, add a % of total column and filter by name or amount. Click a customer to open their statement, use the Write off button to write off an invoice that will not be paid, or export to Excel or CSV. Unused credits show as negative amounts in the Current column, so the report ties to the general ledger. For invoice-level detail, the A/R & A/P Aging Detail, Open Invoices and Collections reports (with each customer's phone and email) are in the Reports menu, and Books Checkup lists invoices more than 120 days overdue.

Frequently asked questions

Is aging counted from the invoice date or the due date?

Most small-business reports, including AcboBooks, count days past the due date, so an invoice on net 30 terms is Current for its first 30 days. Some reports age from the invoice date instead; check which one you are reading before comparing figures.

How often should I run the A/R aging report?

Weekly for collections, and at every month-end as part of the close. It takes a minute and catches late payers early.

What is a good percentage over 90 days?

There is no single standard, but for most small businesses anything over 90 days should be a small share of receivables. If it keeps growing, tighten credit terms, take deposits, or review the customers involved.

This article is general information, not tax, legal or accounting advice. Rules and dates change; check the official source or ask your accountant before acting.