Monitor Overdue Payment Effortlessly With Customer Aging Report!

With SalesHero's Customer Aging Report, businesses can effortlessly track overdue payments and streamline receivables management, ensuring steady cash flow and smooth operations with just a few clicks!

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Overview of SalesHero's Customer Aging Report

How Our Customer Aging Report Work?

The customer aging report features columns broken down into date ranges, displaying both current receivables and overdue amounts. What sets our report apart is the added functionality: it includes product details and allows for one-click document generation, such as credit notes and invoices, which can be sent directly to customers—saving time and improving efficiency.

Why Customer Aging Report is Important for Your Busienss?

Refine Your Credit Policies

Aging reports help pinpoint overdue payments. By analyzing the report, you can identify a few key customers causing the majority of late payments and take necessary action. If multiple clients exhibit late payment patterns, it may highlight the need to take immediate action to revise your credit policies.

Maintain Stable Cash Flow

Overdue payments disrupt cash flow, which is crucial for business success. Many companies fail not because of unpaid invoices but due to poor cash flow management. Aging reports help detect issues in accounts receivable, allowing you to address them, such as speeding up collections or preventing cash flow disruptions.

Terminate Risky Client Relationships

Aging reports reveal clients who repeatedly fail to pay, enabling you to decide whether to sever ties. Letting go of such clients minimizes potential losses and protects your business's financial health.

Strengthen Your Collection Strategy

If you found numerous old customers clocking over 60 or 90 days, indicate you may have a weak collection process. Thus, you can remedy the situation by adjusting your collection practices such as hiring a debt collection agency.

How To Prepare a Customer Aging Report?

1. Gather Customer Data

Collect all outstanding invoices and relevant payment records, ensuring you have customer names, invoice numbers, invoice dates, amounts due, and payment terms.

2. Organize the Data

Create a table to list each customer. Include columns for customer name, invoice number, due date, and amount due, ensuring that each entry is clear and easy to read.

3. Categorize the Aging Period

Break the receivables into different age ranges, such as 0-30 days, 31-60 days, 61-90 days, and 90+ days. This categorization helps you track how overdue the payments are and assess credit risk.

4. Calculate Total Receivables

For each customer, calculate the total receivables in each age category and sum up the amounts in each of these time brackets across all customers.

5. Highlight Problem Accounts

Identify and flag customers with overdue payments, particularly those in the 60+ or 90+ day categories. These customers present a higher credit risk.

6. Generate and Review the Report

Compile the data into a clear and concise report. Review the information for accuracy and ensure it reflects the latest status of outstanding payments.

6 step guide to prepare customer aging report

See How Manually Preparing a Customer Aging Report is Complex?

Use SalesHero to automate the process!

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