What is an Accounts Receivable (A/R) Aging Report?

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An Accounts Receivable (A/R) aging report is a financial document that shows how much money a business is owed by its customers, as well as how long those debts have been outstanding. The report is typically organized by aging periods, such as 30 days, 60 days, 90 days, and so on. The purpose of the report is to give a business visibility into its accounts receivable, so that it can identify potential issues and take appropriate action to improve its cash flow.

For example, if a business has a large amount of accounts receivable that are more than 90 days past due, it may indicate that there is a problem with the company's credit control or collections processes. The business can then take steps to address this issue, such as tightening its credit policies, following up more frequently with customers who are late on payments, or hiring a collections agency.

An example of an A/R aging report for a business is as follows:

Aging Period	Amount Owed
0-30 days	$5,000
31-60 days	$3,500
61-90 days	$2,000
91+ days	$1,500
Total	$12,000

In this example, the business has $12,000 in accounts receivable, with $5,000 being owed by customers who are less than 30 days past due, $3,500 being owed by customers who are 31-60 days past due, $2,000 being owed by customers who are 61-90 days past due, and $1,500 being owed by customers who are more than 90 days past due. By reviewing this report regularly, the business can quickly identify any customers that are consistently late on payments and take appropriate action to improve its cash flow.

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