Aging Schedule
An aging schedule categorizes outstanding invoices based on how long they have been overdue, typically in intervals such as 30, 60, or 90 days. It helps businesses prioritize collections by identifying which accounts require immediate attention.
By segmenting overdue invoices, businesses can target high-risk accounts and reduce overdue payments more effectively. Automation of the aging schedule process enables businesses to generate real-time reports, improving decision-making and reducing manual effort. AI-powered AR tools can automatically create aging schedules, flagging accounts at risk of becoming uncollectible.
Having an aging schedule in place helps businesses assess the health of their accounts receivable and take corrective actions. Optimizing aging schedules can significantly reduce Days Sales Outstanding (DSO) and improve overall cash flow.