--- title: "How to Read an Accounts Receivable Aging Report | MCC" description: "What an A/R aging report shows, how to read the buckets, what to do with each overdue group and how to spot customers who are drifting into trouble." url: "https://mcc-solutionsnj.com/bookkeeping/guides/how-to-read-an-accounts-receivable-aging-report" --- Bookkeeping guide · Updated October 23, 2026 # How to Read an Accounts Receivable Aging Report An accounts receivable aging report groups unpaid customer invoices by how overdue they are. It is the most useful single report for managing collections. This guide explains how to read it and what to do with each group. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** An accounts receivable aging report lists each customer's amount owed split into current, 1-30, 31-60, 61-90 and over 90 days past due. Its total should match the accounts receivable balance on your balance sheet. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) · [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) · [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) **Free tools:** [Free invoice template](/bookkeeping/free-invoice-generator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [Measure how slow collections are with the days sales outstanding calculator](/bookkeeping/days-sales-outstanding-calculator). [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## What the report shows The report lists each customer and the amount they owe, split into columns such as current, 1 to 30 days past due, 31 to 60, 61 to 90 and over 90. The total should match the accounts receivable balance on your balance sheet. If the two do not match, there may be unapplied payments, credits or entries posted directly to receivables. Fix that before relying on the report. ## Reading the buckets Current invoices are not yet due. Invoices in the first overdue bucket are usually just late, and a friendly reminder often solves them. The older an invoice gets, the less likely it is to be paid in full, so each step to the right deserves more attention. Look at the percentage of the total in each bucket. A growing share in the older columns is a warning even if the total looks stable. ## Look by customer Check which customers appear across several buckets. A customer who is always 30 days late may simply have slow processes. A customer who stops paying while ordering more is a risk, and it may be time to pause new work until they catch up. Large balances from one customer also concentrate your risk. Know how much of your receivables depend on your top few customers. ## Action for each group For current balances, send invoices promptly and make due dates clear. For slightly overdue ones, send a polite reminder with the invoice attached. For older balances, call, agree on a payment date and confirm it in writing. For very old balances, decide whether to continue collecting, offer a payment plan or write the balance off. Write-offs should follow a clear policy and be recorded properly. ## Make it a habit Review the report weekly or at least monthly. Keep notes on promises to pay and follow up when they pass. Compare the report to your days sales outstanding to see whether collections are getting slower. Good habits at the start, such as clear terms, deposits for large jobs and prompt invoicing, reduce the number of invoices that reach the older columns. ## A short example Suppose total receivables are $50,000: $30,000 current, $10,000 at 1 to 30 days, $6,000 at 31 to 60, $3,000 at 61 to 90 and $1,000 over 90. Sixty percent is current, but 20% is already more than a month past due. Look at the biggest overdue accounts first. A $4,000 invoice at 45 days overdue is worth a phone call today. A $200 invoice over 90 days may be cheaper to write off, once you have confirmed it is not owed. ## Common questions **How often should I run the aging report?** Weekly if you have many customers, and at least monthly for everyone. **What does 61 to 90 days past due mean?** It means the invoice is two to three months overdue from its due date, and collection is getting harder. **Should I charge late fees?** Only if your agreement or invoice says so. Check any rules that apply where you operate. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online)[### Xero Bookkeeping and reconciliation in Xero for New Jersey small businesses, including cleanup and moving from spreadsheets or another program. Xero →](/bookkeeping/software/xero) More guides - [Deferred Revenue for SaaS Companies, Explained](/bookkeeping/guides/deferred-revenue-for-saas-companies-explained) - [MRR vs Recognized Revenue: What Is the Difference?](/bookkeeping/guides/mrr-vs-recognized-revenue-whats-the-difference) - [Annual vs Monthly Billing: What It Does to Cash and Books](/bookkeeping/guides/annual-vs-monthly-billing-cash-and-books) - [SaaS Month-End Close: A Checklist for Software Companies](/bookkeeping/guides/saas-month-end-close-checklist) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Accounting Student Study Workbook Type the entries, see the statements update and check your work against the answer key. [See what's inside ($19)](/toolkits/accounting-student-study-workbook) [Free sample](/toolkits/accounting-student-study-workbook#free-starter)14-day full refund [![Cover of Bookkeeping Fundamentals (ebook) by Matthew Colt](/img/toolkits/bookkeeping-fundamentals-ebook/cover.webp)](/toolkits/bookkeeping-fundamentals-ebook) From the bookshelf ### Bookkeeping Fundamentals A college-level bookkeeping course, without the tuition. By Matthew Colt, $9.99 as an ebook (EPUB and PDF). [See the book](/toolkits/bookkeeping-fundamentals-ebook) [Read the first pages free](/toolkits/bookkeeping-fundamentals-ebook#free-starter) Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)