The QuickBooks A/R aging report, explained
The accounts receivable (A/R) aging report is the single most useful report for getting paid. It lists who owes you money and how late each amount is, grouped into age buckets. Here's how to run it in QuickBooks Online and what to do with it.
How to run it
- Go to Reports (or Business overview, then Reports).
- Search for A/R Aging Summary. (There's also A/R Aging Detail; more on that below.)
- Set Report period or As of to today, and click Run report.
Reading the columns
The summary shows one row per customer and splits what they owe by how far past due it is:
| Column | Means | What to do |
|---|---|---|
| Current | Not due yet | Nothing, unless it's due in the next few days |
| 1 - 30 | Up to a month late | A friendly reminder; often it was simply missed |
| 31 - 60 | One to two months late | A direct follow-up, ideally a phone call |
| 61 - 90 | Two to three months late | Escalate: pause new work, agree a payment plan |
| 91 and over | Over three months late | Final notice; decide on collections or write-off |
| Total | Everything the customer owes |
The report is as of the date you pick, and "late" is measured from each invoice's due date, not the date it was sent. An invoice with Due on receipt terms counts as late from the day after it's issued.
Summary or detail?
- A/R Aging Summary shows totals per customer. Use it to see where the money is.
- A/R Aging Detail lists every individual invoice with its number, date, due date and days past due. Use it when you're about to follow up, so you can quote the invoice number and amount.
What to act on first
Sort your follow-ups by size times age, not by name:
- Large balances in 1 - 30. These are the easiest to collect and the most expensive to lose. A quick note now usually settles them.
- Anything moving into 31 - 60. The odds of collecting drop the longer an invoice sits, so this is the point to pick up the phone.
- Customers with several late invoices. One late invoice is an accident; three is a pattern. Consider changing their terms or asking for a deposit on new work.
- The 91+ column. Decide deliberately: payment plan, collections agency, or write-off. Leaving it sitting there only makes the report harder to read.
How often to check it
Weekly is the usual advice, and monthly is what most busy owners actually manage. The trouble is that an invoice can go past due the day after you check, and sit unnoticed until the next time you look.
You can save the report as a custom report and, on some QuickBooks plans, schedule it to arrive by email. That's better than nothing, but it's a full report on a fixed schedule, not a heads-up when something changes.
Getting told instead of checking
CashWatchdog checks your QuickBooks Online company every morning and emails you only when an invoice has just gone past due, so you catch it in the 1 - 30 column, where it's easiest to collect, instead of finding it in 61 - 90 at month end. It flags each invoice once, again at 30 days if it's still open, and stays quiet otherwise.
Related: how to send payment reminders in QuickBooks and how to work out days sales outstanding.