Glossary
Aging report
An aging report is the list of unpaid invoices sorted by how long they have been overdue: under 30 days, 30 to 60 days, 60 to 90 days and over 90 days.
Explanation
The aging report answers one question every week: who owes how much, and since when? The older an invoice gets, the harder it is to collect. Sorting receivables by age band lets you decide this week’s action for each band, from a polite reminder to a formal notice.
An Excel sheet is enough: one line per invoice, with the client, amount, sent date, due date, last contact and next action.
Example
Fictional example. Out of 22,750,000 FCFA of unpaid invoices, 5,550,000 FCFA are under 30 days overdue, 8,900,000 FCFA between 30 and 60 days, 4,350,000 FCFA between 60 and 90 days and 3,950,000 FCFA over 90 days. The last two bands come first.
The aging report guide explains the method band by band.