Invoice Aging
Invoice aging, also known as accounts receivable aging, is a method of tracking and analyzing unpaid invoices by the duration they remain outstanding. This helps businesses monitor collection efforts and assess the health of their accounts receivable.
Common aging periods include:
- Current (not yet due)
- 1-30 days past due
- 31-60 days past due
- 61-90 days past due
- Over 90 days past due
Invoice aging reports are crucial tools for managing cash flow and identifying potential collection issues before they become significant problems.