How to complete a Accounts Receivable Aging Report

Banks and credit underwriters require an Accounts Receivable Aging Report to evaluate the quality and collectibility of money your customers owe you. This snapshot breaks down outstanding invoices by age bracket so lenders can assess liquidity risk and determine how much of your receivables they will accept as collateral.

- Pull your complete accounts-receivable ledger from your accounting software for the statement date your lender specifies - Have individual customer invoices ready, sorted by invoice date, with balances still outstanding - Gather any credit-hold notices, dispute documentation, or write-off memos for past-due accounts - Confirm your company's standard payment terms so you can accurately classify each invoice into the correct aging bucket - Select your governing state because certain disclosure and lien rules vary by jurisdiction

1. Enter your business legal name, address, and the report date at the top of the form. 2. Choose your governing state from the dropdown or checkbox area and verify that the aging-bucket definitions match your standard terms. 3. List each customer with an outstanding balance in the left-hand column, one row per customer. 4. For every customer, allocate the total amount owed into the correct aging bucket based on invoice date: Current if due within terms, 1-30 days if one month overdue, and so on through 91-120 days. 5. Double-check that each row's bucket amounts add up to the per-customer total in the far-right column. 6. Sum all customers in each vertical aging column to produce the grand total for that bucket at the bottom of the form. 7. Calculate the overall grand total by adding the five bucket totals together, then verify it matches the sum of all per-customer totals. 8. Apply any color-coding the form template provides—typically green for Current, yellow for 1-60 days, and red for balances over 60 days past due. 9. Attach a separate page listing any accounts already sent to collections or written off, even if they do not appear in the aging buckets. 10. Sign and date the certification line affirming that the figures are accurate as of the report date.

- Banks heavily discount or exclude receivables older than 90 days when calculating your borrowing base, so a large red zone signals collection problems and shrinks available credit. - Match your aging report date to your balance sheet date so the lender can cross-check total receivables and spot inconsistencies or duplicate reporting. - Never lump related-party invoices or intercompany balances with third-party customer debt; lenders will not count affiliate receivables as eligible collateral.