How to complete a Accounts Receivable Aging Report in Ohio

Banks require the Accounts Receivable Aging Report to assess how quickly your customers pay and whether your outstanding invoices are collectible. Lenders use this report to determine working-capital health and verify that receivables listed as assets are actually recoverable.

- Your current customer list with outstanding invoice balances as of the report date - Individual invoice dates and amounts for each customer from your accounting system - Documentation of any disputed invoices, partial payments, or payment plans already in place - Your written credit terms and policies so you can compare actual payment patterns against stated terms - Access to your accounting software or spreadsheet where you track invoices by customer and date

1. Set the report date at the top, which becomes your measurement point for calculating how old each invoice is. 2. List each customer with outstanding balances in the left column, typically in alphabetical order or ranked by total amount owed. 3. For each customer, sort their unpaid invoices by age and place the dollar amounts into the correct aging bucket: Current means invoices not yet due or due within your standard terms, 1-30 days means invoices 1 to 30 days past due, and so forth through 91-120 days and sometimes a 120-plus column. 4. Calculate the row total for each customer by adding amounts across all aging buckets; this shows what that customer owes you in total. 5. Apply color coding as your template specifies, usually green or white for Current, yellow for 1-30 days, orange for 31-60 days, and red for anything over 60 days past due. 6. Sum each aging column vertically to show your grand totals by bucket at the bottom of the report. 7. Calculate the final grand total by adding all bucket totals together; this number should match your total accounts receivable balance in your general ledger. 8. Add a percentage row beneath the totals showing what portion of your receivables falls into each bucket, which helps lenders quickly spot concentration in older categories.

- Ohio banks typically want to see 70 percent or more of your receivables in the Current and 1-30 day buckets; anything over 60 days past due raises red flags about collection problems and may be discounted or excluded from borrowing-base calculations. - Double-check that your report date matches your loan-application date and that no customer represents more than 20 percent of total receivables, because lenders worry about customer-concentration risk. - Attach brief notes explaining any large amounts in the 61-90 or 91-120 columns, such as payment plans or disputes, rather than leaving the lender to assume those invoices are uncollectible.