Accounts Receivable Aging Data
New Zealand's national symbol
Q: What do you understand from the accounts receivable aging data? What does it refer to? Can you provide an example on aging data?
A: Aging data for receivables or debtors is simply the information you have on your debtors in terms of the age of their debts. In other words, how long have they owed you money for.
The typical thing that is done is to analyze all debtors according to:
- 30 days,
- 60 days,
- 90 days and
- Beyond 90 days.
Of course the exact time categories can differ from one organization to the other so the above aging categories are not a hard-and-fast rule by any means.
The purpose of this analysis is simply to see how old the different debts are and which debts are totally delinquent. This gives us an idea of what actions to take with regard to each one.
30-day and/or 60-day debts will require more lenient action taken, such as a simple email or telephone call, whereas a totally delinquent debt might require the use of a debt collection company or some legal action.
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