In short
- An AR aging report sorts unpaid invoices by how overdue they are.
- Common buckets: current, 1–30, 31–60, 61–90, and 90+ days past due.
- It’s the main tool for prioritizing collections and spotting bad-debt risk.
- It’s only accurate if cash application is current.
AR aging, defined
An accounts receivable aging report (or aging schedule) lists every open invoice and groups it by how long it has been outstanding. It turns a flat list of receivables into a risk-ranked view of where your cash is stuck.
The older a bucket, the lower the likelihood of collection — which is why aging is the starting point for any collections strategy.
The aging buckets
A standard report uses date ranges measured from the invoice due date: current (not yet due), 1–30, 31–60, 61–90, and 90+ days past due. Each customer’s balance is spread across these columns.
Finance teams use the distribution to estimate the allowance for doubtful accounts and to decide which accounts to escalate first.
Using aging in collections
Aging tells you where to spend effort: work the largest and oldest balances first, because that’s where the exposure is. But the report is only as honest as your reconciliation — if cash application lags, the report shows invoices as unpaid that have actually been settled.
An autonomous agent works the aged queue by exposure and keeps the ledger current so the report stays accurate.
Frequently asked questions
How is the aging period measured?
Most aging reports measure days from the invoice due date, though some measure from the invoice date. Be consistent, because it changes which bucket each invoice falls into.
See Welldun work on your ledger
Welldun chases overdue invoices across email, WhatsApp, and voice, and applies incoming cash to the right invoices automatically — so your DSO falls without the manual chase.
Book a demoRelated terms
DSO · Cash application · Accounts receivable · Dunning · Browse the full glossary →