Aged Receivables - Why is aging of accounts receivable important?

Q: Why is aging of accounts receivable important?

An aging report is useful because it gives you a snapshot of the money that is outstanding and due to you by your customers. It also helps you identify customers that are falling behind on their payments – a clear sign of an underlying problem.

Answer

You may get a good idea of how much money is owing to you from your clients by looking at an aging report. Customers that are late with their payments are an indication of a larger issue, and this tool may help you find them.

Aged Receivables - Why is aging of accounts receivable important?

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