oboloo Glossary

Account Receivable Aging Report

oboloo Glossary

Account Receivable Aging Report

A business’s Account Receivable Aging Report (ARAR) is a crucial financial tool that gives insight into their customer’s payment behavior. By tracking outstanding invoices based on their due dates, businesses can identify accounts that have aged beyond the terms agreed upon – with each age group represented by a separate “bucket” in the report. Through careful analysis of this data, businesses can uncover trends and pinpoint areas for improvement to better manage their receivables and improve cash flow. It’s like having a crystal ball that provides valuable intelligence to help plan and navigate their future growth.