Aging Reports
Other Tools
Aging Reports
Accounts Receivable Aging Report
What is it and what does it show us ?
An accounts receivable aging report or schedule is a report that lists all of the amounts that your customers owe you and groups the amounts owed into categories that show if the amounts customer's owe are current or past due.
What affects the timing of your collections ?
What's a major factor that might affect the time that it takes to collect your sales ? This is not a difficult question. The credit terms that you grant your customers affect when your sales will be converted into cash (collected). Common sense tells you that the longer the period of time that you allow your customers to pay you, the longer it will take to get your cash. On the flip side of the coin, if all your sales were "cash" sales you would have your cash at the time of the sale. Another is the credit worthiness of your customers.
What does it look like ?
Customer's Accounts Receivable Aging Report Date Prepared | |||||||
| Customer's Name | Total Amount Owed | Current Balance (Not Due) | 1-15 Days Late | 16-30 Days Late | 31-60 Days Late | 61-90 Days Late | Over 90 Days Late |
| Percentage Amounts | 100% | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx |
The report contains columns for the customer's name, the total amount owed, the current portion of the debt, and columns for late amounts due. If you look at the table, I even color coded it. Similar to a traffic light, the green colored column represents "safe" amounts, the yellow colored columns represent "caution", and finally the red colored columns represent "danger". A large amount of past due accounts is a warning sign that our company is taking a greater credit risk in our sales practices.
What does it tell or do for us ?
It helps or tells us:
- Are our customers paying on time
- Used an aid in estimating bad debts
- Determine what customers we need to send a reminder notice and/or statements of past due invoices
- Determine what customers that we may have to change their payment terms
- Determine what customers we need to call
- Helps determine when we can expect to receive cash from our customers
- Used as an aid in preparing budgets and projections
Is it tough to prepare ?
It is tedious and time consuming to prepare using a manual bookkeeping system. It requires a detailed analysis of customer's unpaid invoices. Using a computer bookkeeping program it's a piece of cake. Just push a button and get a report when needed or wanted.
Accounts Payable Aging Report
What is it and what does it show us ?
An accounts payable aging report or schedule is a report that lists all of the amounts that you owe to your suppliers and groups the amounts owed into categories that show if the amounts you owe to suppliers are current or past due.
What affects the timing of your payments ?
What's a major factor that might affect the time that it takes to pay for your purchases ? This is not a difficult question. The credit terms that your suppliers grant you affect when your purchases need to be paid. Common sense tells you that the longer the period of time that your suppliers allow you to pay you, the longer you can take to pay them.
What does it look like ?
Supplier's Accounts Payable Aging Report Date Prepared | |||||||
| Supplier's Name | Total Amount Owed | Current Balance (Not Due) | 1-15 Days Late | 16-30 Days Late | 31-60 Days Late | 61-90 Days Late | Over 90 Days Late |
| Percentage Amounts | 100% | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx | xxxxx |
The report contains columns for the supplier's name, the total amount owed, the current portion of the debt, and columns for late amounts due. If you look at the table, I even color coded it. Similar to a traffic light, the green colored column represents "safe" amounts, the yellow colored columns represent "caution", and finally the red colored columns represent "danger". A large amount of past due accounts is a warning sign that your company is experiencing problems.
What does it tell or do for us ?
It helps or tells us:
- Are we paying our suppliers on time
- Helps determine when we need to have cash available to pay our suppliers
- Used as an aid in preparing budgets and projections
- Provides a warning that some suppliers may change our payment terms
Is it tough to prepare ?
It is tedious and time consuming to prepare using a manual bookkeeping system. It requires a detailed analysis of supplier's unpaid invoices. Using a computer bookkeeping program it's a piece of cake. Just push a button and get a report when needed or wanted.
Cash is King ! Let's see how we can plan our cash with Cash Forecasts.
