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Accounts Receivable Aging: What It Is, How to Structure the Report, and How to Use It Copy

TL;DR

Accounts receivable (AR) aging is one of the most practical tools for monitoring customer payment behavior and managing working capital. While metrics like DSO and AR turnover give a high-level view, an aging report breaks receivables down by how long they've been outstanding — making it a frontline tool for credit controllers and CFOs.

In this article we'll cover:

  • What AR aging is

  • How an AR aging report is structured

  • How to extend it with dunning cohorts

  • How finance teams should use aging reports in collections, credit management, and cash flow planning


What Is Accounts Receivable Aging?
AR aging is the practice of categorizing outstanding invoices by the length of time they've been unpaid. The resulting report, called an AR aging report, shows receivables grouped into time "buckets," such as 0–30 days, 31–60 days, 61–90 days, and over 90 days.
The goal is simple: to identify overdue accounts quickly, track patterns of late payment, and prioritize collection efforts.
How to Structure an AR Aging Report
A standard AR aging report includes:

  • Customer name: The customer or account associated with the receivable.

  • Invoice details: Invoice number, invoice date, due date, and outstanding balance.

  • Aging buckets: Receivables are grouped into categories, most commonly:

    • 0–30 days (current, not yet due)

    • 31–60 days (slightly overdue)

    • 61–90 days (seriously overdue)

    • 91+ days (high risk of default)

  • Totals: The report usually shows both customer-level subtotals and grand totals for each bucket.

“Accounts receivable aging is a foundational tool in working capital management. By structuring invoices into clear time buckets, AR teams gain visibility into payment risk, collections priorities, and cash flow impacts.”

Accounts receivable (AR) aging is one of the most practical tools for monitoring customer payment behavior and managing working capital.

AR aging is the practice of categorizing outstanding invoices by the length of time they've been unpaid. The resulting report, called an AR aging report, shows receivables grouped into time "buckets," such as 0–30 days, 31–60 days, 61–90 days, and over 90 days.


The goal is simple: to identify overdue accounts quickly, track patterns of late payment, and prioritize collection efforts.

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Rasmus Areskoug

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Jan 14, 2026

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Accounts Receivable Aging: What It Is, How to Structure the Report, and How to Use It Copykl

Accounts receivable (AR) aging is one of the most practical tools for monitoring customer payment behavior and managing working capital. While metrics like DSO and AR turnover give a high-level view, an aging report breaks receivables down by how long they've been outstanding — making it a frontline tool for credit controllers and CFOs.

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Accounts Receivable Aging: What It Is, How to Structure the Report, and How to Use It Copyk

Accounts receivable (AR) aging is one of the most practical tools for monitoring customer payment behavior and managing working capital. While metrics like DSO and AR turnover give a high-level view, an aging report breaks receivables down by how long they've been outstanding — making it a frontline tool for credit controllers and CFOs.

Jan 14, 2026

Accounts Receivable Aging: What It Is, How to Structure the Report, and How to Use It

Accounts receivable (AR) aging is one of the most practical tools for monitoring customer payment behavior and managing working capital. While metrics like DSO and AR turnover give a high-level view, an aging report breaks receivables down by how long they've been outstanding — making it a frontline tool for credit controllers and CFOs.

Jan 14, 2026

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Finally, a collections system that runs itself.

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Copyright 2026 Paraglide AI

Product

Product overview

Billing support agent

Collection agent

Company

About

Careers

Contact us

Resources

Blog

Legal

Privacy policy

Security & data protection

Terms & conditions

Copyright 2026 Paraglide AI