4 Easy Steps for Contractors to Create an Accounts Receivable Aging Report [Infographic]
In the world of business, there was a concept that was essential for every company's financial health: accounts receivable. It refers to the money that customers owe a business for the goods or services they have received.
As a construction business owner, you rely on timely payments from your customers to keep your cash flow steady. But what happens when payments are delayed, or worse, not made at all? One way to do this is by creating an accounts receivable aging report. In this guide, we'll walk you through a step-by-step infographic guide on how to create an accounts receivable aging report.
Table of Content:
Step-by-Step How to Create an Accounts Receivable Aging Report
What Does Aging Mean?
Aging refers to the process of categorizing your accounts receivable based on how long they've been outstanding. Typically, aging periods are broken down into 30, 60, 90, and 120+ days past due. This allows you to see which accounts are most overdue and take action accordingly.
>> Learn more: What is an Accounts Receivable Aging Report in the Construction Industry?