AR Aging Report Checklist
An accurate AR aging report is the foundation of collections, provisioning and cash forecasting. This checklist makes sure the report you run actually reflects reality before anyone relies on it.
What this checklist covers
- Run the aging report at the correct date and basis
- Confirm the buckets reflect due dates, not issue dates
- Check the report ties to the reconciled ledger total
- Spot the data issues that distort an aging report
- Hand a clean report to collections and finance
6 min
Before you start
An aging report inherits every error in the ledger beneath it, so tidy the ledger first. Apply cash, post credits and confirm the period is frozen.
- Confirm all receipts are applied so paid invoices drop off the report.
- Decide the as-at date and run consistently to it.
- Check whether the report ages by due date or invoice date — due date reflects terms correctly.
- Have the reconciled AR total ready to check the report sums correctly.
Step 1 — Run and verify the report
- Generate the aging report with current, 1–30, 31–60, 61–90 and 90-plus buckets.
- Confirm the report total equals the reconciled AR control account balance.
- Check the ageing is calculated from each invoice's due date, applying that customer's terms.
- Confirm the report date matches the period you are reporting.
Step 2 — Scan for data problems
- Credit balances: usually a misapplied receipt or a missing invoice — investigate, don't ignore.
- Zero-balance clutter: filter out fully-paid accounts so the report stays readable.
- Stale disputes: ensure disputed amounts are flagged, not hidden in the buckets.
- Wrong terms: an invoice on the default term instead of the customer's agreed term ages incorrectly.
Step 3 — Finalise and distribute
- Add a short summary: total AR, percentage past due, and the largest aged accounts.
- Note any caveats — large unapplied cash, known disputes — so readers interpret it correctly.
- Distribute the same version to collections and finance so everyone works one source of truth.
- Archive the report against the period for audit and trend comparison.
Once the report is clean, the oldest buckets are your priority. A free debt appraisal helps you decide which 90-plus balances are worth pursuing externally.
Common mistakes
- Ageing by invoice date. This ignores terms and makes every invoice look later than it is.
- Not tying to the ledger. An aging report that does not equal the reconciled AR total is unreliable.
- Leaving credit balances in. They net down the total and mask the real overdue position.
- Multiple versions floating about. Different teams acting on different exports causes confusion and missed chasing.
Key takeaways
- An aging report is only as good as the reconciled ledger beneath it
- Age by due date, applying each customer's agreed terms
- Confirm the report total equals the AR control account
- Distribute one version so everyone works from the same source
Frequently asked questions
Should the aging report use invoice date or due date?
Due date. Ageing by invoice date ignores your payment terms and makes invoices appear overdue when they are simply within terms. Due-date ageing shows what is genuinely past due, which is what collections and provisioning need.
Why does my aging report show negative balances?
A negative or credit balance usually means a receipt was applied to the wrong invoice, a customer overpaid, or a credit note is sitting unmatched. Investigate each one — they net down your total and can hide real overdue debt.
How often should I run the aging report?
Monthly at minimum for reporting, and often weekly for active collections. The more current the underlying cash application, the more reliable the report, so frequent light reviews beat one heavy month-end scramble.
Work the checklist, then get paid
Use the free Invoice Generator, then let Merion recover anything that goes unpaid — commission-only.