Aging report

An aging report is a list of unpaid invoices grouped by how long each has been outstanding, usually in 30-day buckets.

The standard buckets are current, 1–30 days past due, 31–60, 61–90 and over 90. Each row is a client; each column shows how much of their balance falls in that bucket. Most accounting software produces one from your invoices.

Read it weekly. The totals tell you how much cash is tied up; the buckets tell you where to spend your time. A client sliding from 1–30 into 31–60 needs a phone call, not another automatic email.

A simple routine: a friendly reminder before the due date, a call when an invoice is a week late, a written notice at 30 days that mentions your late fee if the contract allows one, and a check of your lien deadlines well before 60 days. What comes after that depends on the amount and the relationship: a payment plan, a demand letter, a lien or small claims court.

An aging report also shows which clients are slow every time. Price that in, ask them for larger deposits, or move them to shorter terms on the next job.