Accounts Receivable Aging Report Explained
An accounts receivable (AR) aging report is a financial document that groups a company's outstanding invoices into time-based "buckets" based on how long they've been past due. The standard buckets are: Current, 1-30 days, 31-60 days, 61-90 days, and 90+ days past due.
The aging report is the foundation of every AR management process. It tells you at a glance where your money is stuck, which accounts need immediate attention, and how much of your AR is at risk of becoming bad debt. Without an aging report, AR management is guesswork.
The single most important insight from an aging report: the older an invoice, the less likely it will ever be collected. An invoice at 0-30 days overdue has a 90%+ recovery rate. At 90+ days, that drops below 50%. At 180+ days, below 25%. Speed of intervention is everything.
What You Need to Know About Aging Reports
- The 60-day window is your collection inflection point. Accounts addressed before 60 days overdue recover at roughly 2x the rate of accounts left until 90+ days.
- Use it to calculate your bad debt reserve. Apply industry-standard write-off percentages to each aging bucket to estimate your allowance for doubtful accounts.
- Run it weekly at minimum. A monthly aging review means some accounts sit 30+ extra days before anyone notices.
- Sort by dollar amount within each bucket. Prioritize the largest overdue balances first — don't spend equal time on a $500 invoice and a $50,000 invoice.
- The 90+ bucket is a leading indicator of cash flow problems. If your 90+ bucket is growing each month, your collection process is failing — not your customers.
AR Aging Report: Risk by Bucket
| Aging Bucket | Days Past Due | Typical Recovery Rate | Risk Level | Action Required |
|---|---|---|---|---|
| Current | Not yet due | 95-99% | Low | Monitor |
| 1-30 Days | 1 to 30 days late | 85-95% | Low-Medium | Reminder + first call |
| 31-60 Days | 31 to 60 days late | 65-80% | Medium | Active outreach + escalation |
| 61-90 Days | 61 to 90 days late | 40-60% | High | Formal demand + attorney warning |
| 90+ Days | Over 90 days late | 15-40% | Critical | Attorney demand or agency referral |
Reading an Aging Report: B2B Example
Technology Company: $420K Total AR
Current (not yet due): $180,000 — healthy, no action needed
1-30 days past due: $95,000 — send reminders, make first calls
31-60 days past due: $85,000 — active collection needed now; this is the critical window
61-90 days past due: $40,000 — formal demands; risk of bad debt increasing rapidly
90+ days past due: $20,000 — escalate to attorney or collection agency immediately
Bad debt reserve estimate: Apply standard percentages: 0% of current + 5% of 1-30 + 15% of 31-60 + 30% of 61-90 + 50% of 90+ = $0 + $4,750 + $12,750 + $12,000 + $10,000 = ~$39,500 reserve (9.4% of total AR)
How AgentCollect Uses Your Aging Report
Real-Time Aging Monitoring + Automated Action
AgentCollect connects to your invoicing system and monitors your AR aging in real time. The moment an invoice moves from Current into the 1-30 day bucket, an AI agent is automatically dispatched — no manual review of the aging report required.
Each aging bucket triggers a different level of action: gentle reminder for 1-30 days, active phone outreach for 31-60 days, formal demand language for 61-90 days, and automatic attorney escalation for 90+ day accounts. Your aging report becomes an automated action plan, not just a report to review.
Related AR Glossary Terms
Aging Report FAQ
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