{"id":7505,"date":"2024-09-10T10:40:03","date_gmt":"2024-09-10T10:40:03","guid":{"rendered":"https:\/\/alwadiholding.com\/aw-qatar\/?p=7505"},"modified":"2024-10-03T11:58:19","modified_gmt":"2024-10-03T11:58:19","slug":"past-due-receivables","status":"publish","type":"post","link":"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/","title":{"rendered":"Past Due Account Receivables| AR Aging Report"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"7505\" class=\"elementor elementor-7505\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-439ac22 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"439ac22\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9e89257 cspt-bg-color-over-image\" data-id=\"9e89257\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b081015 elementor-widget elementor-widget-text-editor\" data-id=\"b081015\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-size: 14pt\">Accounts receivable aging is a crucial financial management tool that helps businesses monitor their past due receivables and assess the health of their cash flow. This process involves categorizing receivables based on the length of time they have been outstanding.\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">Understanding Accounts Receivable Ageing not only aids in improving collections but also provides insights into potential liquidity issues and customer creditworthiness, making it an essential practice for maintaining a robust financial position.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#What_Is_an_Accounts_Receivable_Aging_Report\" title=\"What Is an Accounts Receivable Aging Report?\">What Is an Accounts Receivable Aging Report?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#When_Is_an_Accounts_Receivable_Aging_Report_Used\" title=\"When Is an Accounts Receivable Aging Report Used?\">When Is an Accounts Receivable Aging Report Used?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#4_Benefits_of_Accounts_Receivable_Aging_Method\" title=\"4 Benefits of Accounts Receivable Aging Method\u00a0\">4 Benefits of Accounts Receivable Aging Method\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#1_%E2%80%93_Improved_Cash_Flow_Management\" title=\"1 &#8211; Improved Cash Flow Management: \u00a0\">1 &#8211; Improved Cash Flow Management: \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#2_%E2%80%93_Enhanced_Credit_Risk_Assessment\" title=\"2 &#8211; Enhanced Credit Risk Assessment:\u00a0\">2 &#8211; Enhanced Credit Risk Assessment:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#3_%E2%80%93_Improved_Collection_Efforts\" title=\"3 &#8211; Improved Collection Efforts:\u00a0\">3 &#8211; Improved Collection Efforts:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#4_%E2%80%93_Better_Financial_Reporting\" title=\"4 &#8211; Better Financial Reporting:\u00a0\">4 &#8211; Better Financial Reporting:\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#How_to_Calculate_Accounts_Receivable_Aging\" title=\"How to Calculate Accounts Receivable Aging\u00a0\">How to Calculate Accounts Receivable Aging\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#Account_Receivable_Report_Sample\" title=\"Account Receivable Report Sample\">Account Receivable Report Sample<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#i\" title=\"\u00a0\">\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#What_is_included_in_an_Account_Receivable_Aging_Report\" title=\"What is included in an Account Receivable Aging Report:\u00a0\">What is included in an Account Receivable Aging Report:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#i-2\" title=\"\u00a0\">\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#What_Is_the_Aging_of_Accounts_Receivable_Method\" title=\"What Is the Aging of Accounts Receivable Method?\u00a0\">What Is the Aging of Accounts Receivable Method?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#1_%E2%80%93_Categorize_Invoices_by_Ages\" title=\"1 &#8211; Categorize Invoices by Ages:\u00a0\">1 &#8211; Categorize Invoices by Ages:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#2_%E2%80%93_Assign_a_Percentage_to_Every_Bad_Debt\" title=\"2 &#8211; Assign a Percentage to Every Bad Debt: \u00a0\">2 &#8211; Assign a Percentage to Every Bad Debt: \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#3_%E2%80%93_Calculate_the_Estimated_Bad_Debt\" title=\"3 &#8211; Calculate the Estimated Bad Debt:\u00a0\">3 &#8211; Calculate the Estimated Bad Debt:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#4_%E2%80%93_Sum_the_Estimated_Bad_Debts\" title=\"4 &#8211; Sum the Estimated Bad Debts:\u00a0\">4 &#8211; Sum the Estimated Bad Debts:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/#Sign_up_for_our_newsletter_and_receive_actionable_AR_strategies\" title=\"Sign up for our newsletter and receive actionable AR strategies!\">Sign up for our newsletter and receive actionable AR strategies!<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_an_Accounts_Receivable_Aging_Report\"><\/span><strong><span style=\"color: #642b3e\">What Is an Accounts Receivable Aging Report?<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-size: 14pt\"><a href=\"https:\/\/alwadiholding.com\/aw-qatar\/aw-receivable-management-service\/\" target=\"_blank\" rel=\"noopener\">Accounts receivable<\/a> aging report is periodic report to be generated on a regular basis to calculate and determine <strong>how much time the invoice is outstanding<\/strong>, meaning your customers unpaid invoices duration since the sales deal was closed,\u00a0and to see the overall performance of collection activities for those invoices.\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">Add to that it helps you set alarms for risks associated with cash flow running by indicating the customers who have troubles paying their past due receivables on time.\u00a0\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">This report is a valuable and helpful tool assisting you to creditworthiness of your customers along with any potential risk or issue that would affect your income.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"When_Is_an_Accounts_Receivable_Aging_Report_Used\"><\/span><strong><span style=\"color: #642b3e;font-size: 24pt\">When Is an Accounts Receivable Aging Report Used?<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Accounts receivable aging reports are typically used on a regular basis, often monthly or weekly, to monitor the health of a company&#8217;s receivables. This frequency can vary depending on <strong>the industry, business size, and the specific needs of the organization<\/strong>.\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">If you need to assess the expected income or cashflow, the collection efforts and set targeted KPIs for your in-house or outsourced collection team or you want to evaluate the creditworthiness of customers and identify potential risks, or even providing some information for your financial and business reporting then you should add the report of the accounts receivable ageing to your list.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"4_Benefits_of_Accounts_Receivable_Aging_Method\"><\/span><span style=\"color: #642b3e\"><span class=\"TextRun SCXW71891865 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">4<\/span> <span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">Benefits of <\/span><span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">A<\/span><span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">ccounts <\/span><span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">R<\/span><span class=\"NormalTextRun SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">eceivable <\/span><\/span><span class=\"TextRun Highlight SCXW71891865 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"FindHit SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">A<\/span><span class=\"FindHit SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\">ging<\/span><span class=\"FindHit SCXW71891865 BCX0\" data-ccp-parastyle=\"heading 2\"> Method<\/span><\/span><span class=\"EOP SCXW71891865 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:300,&quot;335559740&quot;:630}\">\u00a0<\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-size: 14pt\">Measuring and tracking past due receivables are very important so that companies can decide the best thing to do with those receivables in case of payment whether to sell those receivables for factoring companies, assign the task of <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/\" target=\"_blank\" rel=\"noopener\">accounts receivable\u00a0 collection<\/a> to accounts receivable outsourcing companies, or persuade a legal action inside court against those clients to recover the outstanding amounts back.<\/span><\/p><p><span style=\"font-size: 14pt\"><span class=\"TextRun SCXW215914239 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun CommentStart CommentHighlightPipeClickedV2 CommentHighlightClicked SCXW215914239 BCX0\">Add to that other <\/span><\/span><span class=\"TextRun SCXW215914239 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW215914239 BCX0\">several significant benefits to businesses<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW215914239 BCX0\">, <strong>here are 4 benefits:<\/strong><\/span><\/span><strong><span class=\"EOP CommentHighlightPipeClickedV2 SCXW215914239 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:375,&quot;335559740&quot;:279}\">\u00a0<\/span><\/strong><\/span><\/p><h3><span class=\"ez-toc-section\" id=\"1_%E2%80%93_Improved_Cash_Flow_Management\"><\/span><span style=\"font-size: 24pt\">1 &#8211; Improved Cash Flow Management: \u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Aging report sample in excel can help you predict the cashflow by categorizing invoices by age and anticipate when the customers could pay, also identifying potential shortfalls especially when you are dealing with a large portfolio of past due receivables.\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"2_%E2%80%93_Enhanced_Credit_Risk_Assessment\"><\/span><span style=\"font-size: 24pt\">2 &#8211; Enhanced Credit Risk Assessment:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">With the outputs in the aging report sample in excel you can easily identify the high-risk customers by analyzing these outcomes and evaluate the credit policies to make the necessary adjustments.\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"3_%E2%80%93_Improved_Collection_Efforts\"><\/span><span style=\"font-size: 24pt\">3 &#8211; Improved Collection Efforts:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">An account receivable report sample helps you prioritize the follow up efforts with customers who have over past due receivables, increasing the likelihood of timely payment.\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"4_%E2%80%93_Better_Financial_Reporting\"><\/span><span style=\"font-size: 24pt\">4 &#8211; Better Financial Reporting:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\" data-contrast=\"auto\">Aging reports provide essential data for preparing accurate financial statements, such as the allowance for doubtful accounts, plus it will empower you with clear understanding of receivables, to make more informed decisions regarding pricing, credit terms, and overall financial health.<\/span><\/p><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"How_to_Calculate_Accounts_Receivable_Aging\"><\/span><strong><span style=\"font-size: 24pt;color: #642b3e\">How to Calculate Accounts Receivable Aging\u00a0<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-size: 14pt\">Accounts receivables is being listed and sorted based on the length of past due receivables, if the length is less than<strong> 30, 60, 90 days<\/strong> are considered current but if they passed 180 days it became old and have higher possibility to turn to <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/how-to-collect-unpaid-debt-in-qatar\/\" target=\"_blank\" rel=\"noopener\">bad debts<\/a>, and if the payment status completed, they being removed from the records.\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0ee663f cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0ee663f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-462ff29 cspt-bg-color-over-image\" data-id=\"462ff29\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-25b1657 elementor-widget elementor-widget-heading\" data-id=\"25b1657\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Account_Receivable_Report_Sample\"><\/span>Account Receivable Report Sample <span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2ce0bfd cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ce0bfd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d5ac9ec cspt-bg-color-over-image\" data-id=\"d5ac9ec\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cd43774 elementor-widget__width-inherit elementor-widget elementor-widget-image\" data-id=\"cd43774\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"847\" height=\"310\" src=\"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Simple-Business-Comparison-Table-Chart-1.webp\" class=\"attachment-large size-large wp-image-7549\" alt=\"Account receivable aging\" srcset=\"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Simple-Business-Comparison-Table-Chart-1.webp 1024w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Simple-Business-Comparison-Table-Chart-1-300x110.webp 300w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Simple-Business-Comparison-Table-Chart-1-768x281.webp 768w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Simple-Business-Comparison-Table-Chart-1-770x282.webp 770w\" sizes=\"(max-width: 847px) 100vw, 847px\" data-id=\"7549\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7c20f09 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7c20f09\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-51bc9b2 cspt-bg-color-over-image\" data-id=\"51bc9b2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5dee1df elementor-widget elementor-widget-text-editor\" data-id=\"5dee1df\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><span class=\"ez-toc-section\" id=\"i\"><\/span>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2><h2><span class=\"ez-toc-section\" id=\"What_is_included_in_an_Account_Receivable_Aging_Report\"><\/span><span style=\"color: #642b3e\"><b>What is included in an Account Receivable Aging Report:<\/b>\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span data-contrast=\"auto\">The report includes the balances of each customer past due receivables and sort <span style=\"font-size: 14pt\">the invoices into columns as follows:<\/span><\/span><span style=\"font-size: 14pt\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><ul><li><strong><span style=\"font-size: 14pt\">1 to 30 days past due.\u00a0<\/span><\/strong><\/li><li><strong><span style=\"font-size: 14pt\">31 to 60 days past due.\u00a0<\/span><\/strong><\/li><li><strong><span style=\"font-size: 14pt\">61 to 90 days past due.\u00a0<\/span><\/strong><\/li><li><strong><span style=\"font-size: 14pt\">Over 120 days past due.<\/span><\/strong><\/li><\/ul><p><span style=\"font-size: 14pt\">Gain further<strong> insights<\/strong> into accounts receivable aging and understand the days outstanding, please explore our resources and download our <strong>aging of accounts receivable in excel<\/strong>.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2789db5 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2789db5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5d21b49 cspt-bg-color-over-image\" data-id=\"5d21b49\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-62f7bdf elementor-widget elementor-widget-text-editor\" data-id=\"62f7bdf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><span class=\"ez-toc-section\" id=\"i-2\"><\/span>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2><h2><span class=\"ez-toc-section\" id=\"What_Is_the_Aging_of_Accounts_Receivable_Method\"><\/span><span style=\"color: #642b3e\"><b>What Is the Aging of Accounts Receivable Method?<\/b>\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-size: 14pt\">The method is a technique used to estimate the number of bad debts the company is about to incur, and it goes as follows:\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"1_%E2%80%93_Categorize_Invoices_by_Ages\"><\/span><span style=\"font-size: 24pt\">1 &#8211; Categorize Invoices by Ages:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Group them into age buckets such as 0-30 days, 31-60 days, 61-90 days, and over <strong>90 days<\/strong>.\u00a0<\/span><\/p><p><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"2_%E2%80%93_Assign_a_Percentage_to_Every_Bad_Debt\"><\/span><span style=\"font-size: 24pt\">2 &#8211; Assign a Percentage to Every Bad Debt: \u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Calculate this based on historical data, benchmarks and category, older invoices usually assigned with higher percentage.\u00a0<\/span><\/p><p><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"3_%E2%80%93_Calculate_the_Estimated_Bad_Debt\"><\/span><span style=\"font-size: 24pt\">3 &#8211; Calculate the Estimated Bad Debt:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">By multiplying the balance in each age category by its corresponding bad debt percentage.\u00a0<\/span><\/p><p><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"4_%E2%80%93_Sum_the_Estimated_Bad_Debts\"><\/span><span style=\"font-size: 24pt\">4 &#8211; Sum the Estimated Bad Debts:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\" data-contrast=\"auto\">Add up the estimated bad debts for all age categories to determine the total estimated bad debt expense.<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-19a8def cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"19a8def\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a51b880 cspt-bg-color-over-image\" data-id=\"a51b880\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f2ec3b5 elementor-widget elementor-widget-heading\" data-id=\"f2ec3b5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Sign_up_for_our_newsletter_and_receive_actionable_AR_strategies\"><\/span>Sign up for our newsletter and receive actionable AR strategies!<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6395cc8 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6395cc8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a8bbe27 cspt-bg-color-over-image\" data-id=\"a8bbe27\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0e55060 elementor-widget elementor-widget-elementskit-contact-form7\" data-id=\"0e55060\" data-element_type=\"widget\" data-widget_type=\"elementskit-contact-form7.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"ekit-wid-con\" ><div class=\"ekit-form\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f7420-o1\" lang=\"en-US\" dir=\"ltr\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/aw-qatar\/wp-json\/wp\/v2\/posts\/7505\/#wpcf7-f7420-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<div style=\"display: none;\">\n<input type=\"hidden\" name=\"_wpcf7\" value=\"7420\" \/>\n<input type=\"hidden\" name=\"_wpcf7_version\" value=\"5.9.8\" \/>\n<input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/>\n<input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f7420-o1\" \/>\n<input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/>\n<input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/div>\n<div class=\"form_newsletter p-5\">\n\t<div class=\"row align-items-center\">\n\t\t<div class=\" col-sm-6 col-md-6 col-lg-6\">\n\t\t\t<p><label> Your name<br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" autocomplete=\"name\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"your-name\" \/><\/span> <\/label>\n\t\t\t<\/p>\n\t\t\t<p><label> Your email<br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" autocomplete=\"email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span> <\/label>\n\t\t\t<\/p>\n\t\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Submit\" \/>\n\t\t\t<\/p>\n\t\t<\/div>\n\t\t<div class=\"col-sm-6 col-md-6 col-lg-6\">\n\t\t\t<p><img decoding=\"async\" src=\"https:\/\/alwadiholding.com\/wp-content\/uploads\/2024\/08\/signal-2024-08-25-160604_002.png\" \/>\n\t\t\t<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1912e1c cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1912e1c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a521f6f cspt-bg-color-over-image\" data-id=\"a521f6f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cd56af2 elementor-widget elementor-widget-text-editor\" data-id=\"cd56af2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><span style=\"font-size: 24pt;color: #642b3e\"><b>Wrapping Up:<\/b>\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">In the above blog we got to know the accounts receivable ageing, <strong>what does it mean<\/strong>, <strong>why is it important<\/strong>, <strong>how it affects your business<\/strong>, <strong>how to calculate it<\/strong>.<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Accounts receivable aging is a crucial financial management tool that helps businesses monitor their past due receivables and assess the health of their cash flow. This process involves categorizing receivables based on the length of time they have been outstanding.\u00a0 Understanding Accounts Receivable Ageing not only aids in improving collections but also provides insights into potential liquidity issues and customer creditworthiness, making it an essential practice for maintaining a robust[&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":7506,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"_joinchat":[],"footnotes":""},"categories":[210],"tags":[],"class_list":["post-7505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aw-receivable-management-service"],"acf":[],"jetpack_featured_media_url":"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/Website-Blogs-pics-1-2-1.webp","_links":{"self":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7505"}],"collection":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/comments?post=7505"}],"version-history":[{"count":137,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7505\/revisions"}],"predecessor-version":[{"id":7880,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7505\/revisions\/7880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/media\/7506"}],"wp:attachment":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/media?parent=7505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/categories?post=7505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/tags?post=7505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}