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Accounts Receivable Aging

The accounts receivable aging schedule is a useful tool for analyzing the makeup of your accounts receivable balance. Analyzing the schedule allows you to spot problems in accounts receivable early enough to protect your business from major cash-flow problems.

The A/R aging schedule can be used to identify the customers that are extending the time it takes for you to collect your accounts receivable. If the bulk of the overdue amount in receivables is attributable to one customer, then steps can be taken to see that this customer’s account is collected promptly. If overdue amounts stem from a number of customers, that could be a signal that your business needs to tighten its credit policy toward new and existing customers. For more information call us at 877-740-7839
Burt and Associates
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