How to complete a Accounts Receivable Aging Report

Lenders require an Accounts Receivable Aging Report to understand how quickly your customers pay and whether your outstanding invoices are collectible. This form groups unpaid invoices by age bracket so underwriters can assess cash-flow risk and the true value of your receivables as collateral.

- Pull your current accounts receivable ledger or aging report from your accounting software (QuickBooks, Xero, FreshBooks, or similar) - Have each customer's unpaid invoice number, invoice date, original amount, and any partial payments received - Gather documentation for any disputed invoices or customer payment plans already in place - Confirm your company's standard payment terms (net 30, net 60, etc.) so you can accurately classify invoices as current or past due - Select your governing state because lien laws and collection statutes vary; this affects how lenders value aged receivables

1. Enter your business legal name, reporting date, and the state where you primarily operate at the top of the form. 2. List each customer with outstanding balances in the first column, one customer per row, using their legal business name or full individual name. 3. For each customer, review every unpaid invoice and place the outstanding dollar amount into the correct aging bucket: Current (not yet due), 1-30 days past due, 31-60 days, 61-90 days, or 91-120 days and over. 4. Total each row across all aging buckets to show the customer's total outstanding balance. 5. Move down the form row by row until every customer with an unpaid invoice is listed. 6. Sum each aging-bucket column vertically to calculate the grand total for that time bracket. 7. Add all bucket totals horizontally to produce the grand total accounts receivable figure, which should match your general ledger balance. 8. Apply the color coding: most templates use green for Current, yellow for 1-30 days, orange for 31-60, and red for anything over 60 days to give lenders a visual snapshot of collection risk. 9. Attach a brief note if any large past-due balance has a documented payment arrangement or is under dispute.

- Banks heavily discount receivables older than 60 days because collection becomes unlikely; expect underwriters to exclude anything past 90 days from your borrowing base calculation, so a report showing most balances in Current and 1-30 buckets strengthens your application. - Double-check that your grand total matches your balance sheet accounts receivable line item; mismatches raise red flags and delay approval. - Avoid lumping multiple invoices into one line; lenders want customer-level detail to spot concentration risk if one or two customers represent most of your receivables.