How to complete a Accounts Receivable Aging Report

Banks and credit underwriters require an Accounts Receivable Aging Report to assess how quickly your customers pay and whether your outstanding invoices represent real, collectible cash flow. You will submit this when applying for working-capital loans, lines of credit, or asset-based lending facilities.

- Pull your general ledger or accounting-software customer receivables detail for the reporting period end date - Confirm the exact report date with your lender so aging buckets align with their underwriting snapshot - Have your complete customer invoice register showing invoice numbers, dates, amounts, and payment terms - Identify any disputed invoices, credits, or chargebacks so you can note them separately - Select your governing state because some lenders apply state-specific reserve percentages against aged receivables

1. Enter your business legal name, tax ID, and the report date at the top of the form. The report date freezes the aging calculation, so confirm it matches your loan-application package. 2. List each customer with an outstanding balance in the left-hand customer-name column. Use the exact legal names that appear on invoices, not nicknames or DBA variations. 3. For each customer, calculate how many days each invoice is outstanding from the invoice date to your report date, then slot the invoice amount into the correct aging bucket: Current (0-30 days), 1-30 days past due, 31-60, 61-90, or 91-120 days past due. 4. Total each aging bucket horizontally across the row for every customer so the sum of all five buckets equals that customer's total accounts receivable balance. 5. Verify the per-customer totals in the far-right column, then add them vertically to produce the grand total accounts receivable at the bottom of the report. 6. Cross-check your grand total against your balance-sheet accounts-receivable line item on the same date. Any difference requires a reconciliation note. 7. Flag invoices older than 90 days and attach a brief explanation for each: payment plan in place, disputed charges, customer bankruptcy, or active collection. 8. Apply color coding if your template includes it—green for Current, yellow for 1-60 days, red for 61 days and older—to give lenders a visual snapshot of concentration risk.

- Underwriters heavily discount or exclude receivables older than 90 days when calculating your borrowing base, so a report showing most balances in Current and 1-30 buckets strengthens your application. - High concentration with one or two customers in the aged buckets signals collection risk; be ready to explain customer payment cycles and provide recent payment history or signed payment agreements. - Avoid rounding to whole dollars or leaving aging buckets blank; precision and completeness signal strong financial controls and reduce the chance your application gets sent back for revisions.