Accounts Receivable
AR Aging Report: How to Read It and What to Do
Short answer
An AR aging report groups your unpaid invoices into buckets — current, 1–30 days late, 31–60, 61–90, 90+. The further right an invoice slides, the lower the chance you ever collect. Run it weekly and act on every bucket.
Most accounting tools (and Glo Invoice) generate this with one click. The skill is in what to do with it.
Action by bucket
| Bucket | What to do |
|---|---|
| Current (not yet due) | Nothing — but make sure they received it |
| 1–30 days late | Friendly text + email reminder, offer to take a card over the phone |
| 31–60 days late | Phone call, document the conversation, set a hard date |
| 61–90 days late | Add late fee, send a formal demand letter, pause new work |
| 90+ days late | Send to collections OR write off — chasing it costs more than recovering it |
Targets for a healthy AR
- 75%+ of total AR in 'current' bucket
- Less than 10% in 60+ bucket
- No customer is more than 30% of total AR (concentration risk)
Frequently asked questions
How often should I run AR aging?
Weekly. Daily once anything crosses 60 days.
Cash flow you can see.
Glo Invoice surfaces AR aging, upcoming cash, and overdue invoices on one dashboard — free for 14 days.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.