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Accounts Receivable Aging FAQs for Successful Contractors

Are you a contractor looking to manage your accounts receivable more effectively? Do you want to know what accounts receivable aging is and how it can help you track unpaid invoices? In this blog post, we'll answer some frequently asked questions about accounts receivable aging and its importance for contractors.

Table of Content:

Accounts Receivable Aging REPORT FAQs

What is the Accounts Receivable Aging Report?

The accounts receivable aging report helps contractors track unpaid invoices. It shows how long each invoice has been unpaid. The report is divided into columns for different time periods, such as 0-30 days and 31-60 days. Each column shows the total amount of unpaid debt for invoices in that time period.

The report may also have other details, like the customer's name, the invoice number, and when the invoice was issued. Sometimes there are notes about the invoice's status, like if it's disputed or if a payment plan has been arranged.

Why is the Accounts Receivable Aging Report Important?

Accounts receivable aging is important for contractors. It provides a snapshot of the company's cash flow situation. Contractors often wait a long time for payment, so this report helps them know which invoices are late, and how long they have been late.

So how does it help them manage their finances better?