Accounts receivable tracks money customers owe. An ageing report groups unpaid invoices by how long they have been outstanding: current, one month overdue, two months, and beyond. The report turns a pile of invoices into a priority list. Collectors start with the oldest balances, because the longer an invoice stays unpaid, the less likely it is to be paid in full.
Reading the report like a collector
- Start with the oldest bracket, and check whether those customers are still trading before chasing payment.
- Look for patterns, such as one customer repeatedly paying late, which signals a process problem, not bad luck.
- Separate disputes from delays: a disputed invoice needs resolution, while a delayed one needs a reminder.
- Note promised payment dates from every call, so follow-ups have a deadline instead of a vague intention.
Keep notes on every customer contact in the same place as the report. Memory is not a collections system.