![]() Thus, the aging report is a tool that helps firms weed out bad clients and improve accounts receivable turnover. In these cases, the company might contact their client to notify them of their outstanding invoices and further negotiate business terms if the client fails to pay for their invoices. This is important because it allows a company to take a step back and evaluate which of their clients are risky to do business with. Thus, allowing the company to assess its clients in greater detail than if they only evaluated them based on their outstanding balances. These accounts are usually categorized into 30-day intervals. ![]() An aging report is a report that categorizes the balances of a company’s clients based on the length of time their invoices are outstanding – its age. ![]()
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