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The Importance of the Accounts Receivable Aging Report

Gaviti

What Is an AR Aging Report? As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (A/R) aging report. AR aging reports provide concrete information that can be used to take action. An aging report also analyzes how your customers’ companies work.

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Resolve to Be More Proactive in 2024

Your Virtual Credit Manager

Segmenting your receivables can be based on any number of criteria: industry type, distribution channel, customer risk rating or score, credit limit, AR aging and so on. While these are all useful as a secondary segmentation, the place you want to start is with customer annual purchases from your firm.