Cash Flow Woes? How the AR Aging Report Helps Contractors Get Paid on Time
Any business must manage cash flow, but construction contractors must do so even more. With the often-lagging payment cycles, managing accounts receivable (AR) can be a challenging task. That's where AR aging reports come in. By keeping an eye on these reports on a daily basis, contractors can find issues with unpaid invoices and take care of them before they cause big cash flow problems... In this article, we'll talk about AR aging reports, why contractors need them, and how you can use these reports to get paid for your hard work.
Table of content:
What is an Accounts Receivable Aging Report?
An AR aging report is a document that lists all the outstanding invoices that a contractor has sent to its customers. The report provides an overview of how much money is owed, how long it has been outstanding, and how much is overdue.
The report sorts unpaid bills by how long they have been overdue. The most recent invoices are listed first, followed by those that are 30, 60, 90, or more days late.
>> Learn more: 4 Easy Steps for Contractors to Create an Accounts Receivable Aging Report [Infographic]
How Do Aging Reports Help Contractors Maintain Healthy Cash Flow?
For contractors, managing stable cash flow is critical, and AR aging reports are an essential tool for achieving this goal. Here are some ways that the aging report can help you spot cash flow problems: