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Accounts Receivable Aging

Accounts receivable aging is a reporting process that categorizes unpaid invoices and credit memos according to how long they remain outstanding. They are typically sorted into 30-day ranges (0-30 days, 31-60 days, 61-90 days), and this report is how companies calculate their days sales outstanding (DSO) average. 

Accounts receivable aging analysis allows businesses to identify opportunities to automate and optimize their O2C process, evaluate the health and reliability of their customers and make strategic decisions that impact nearly every aspect of their business.

Related terms

Cash Flow from Investments
Cash flow from investments can be used to understand the money your business has earned from or spent on real estate, stock and other investment opportunities.
Cash Flow from Operations
Cash flow from operations measures the money a business generates from day-to-day activities, usually over a quarter or fiscal year.
Consolidated Invoicing
Consolidated invoicing, also known as centralized billing or grouped invoicing, is a billing process in which multiple transactions or charges incurred over a specified period are combined into a single invoice for payment.
Contract Management
Contract management is the process of managing the creation, execution, and administration of contracts between parties, such as businesses, organizations, or individuals.
Credit Card Processing
Credit card processing refers to the procedures and systems involved in securely authorizing and completing electronic payments made using credit cards.
Credit Card Reconciliation
Credit card reconciliation is the process of comparing transactions recorded in a company's accounting records with those listed on credit card statements to ensure accuracy and completeness.