What is Accounts Receivable Aging?
One of the key elements in any workable accounts receivable management program is to provide periodic reports that show the aging process for outstanding invoices issued to customers for goods and services rendered. The process of accounts receivable aging is the means whereby those reports are compiled and provided to the proper officers of the organization. Here are some reasons why accounts receivable aging is so important and why being aware of the outstanding receivable balance at any given time is so crucial to the financial health of any company. Accounts receivable aging is a valuable component of being able to structure an operating budget for the company. Understanding the existing payment habits of customers and matching that with the need for steady revenue into the company so it can meet its outstanding obligations helps to ensure that the organization will have funds in hand by a given date to take care of operating costs. Without maintaining a constant vigil on the flow
