One technique for grouping unpaid clients according to the length of time that invoices have passed is an aging schedule. In general, accounts are divided into three categories: 0–30 days, 31–60 days, and 90+ days. Identification of payments is aided by an aging schedule. past-due money and evaluate the AR’s financial situation. Prioritizing debt collection efforts can also be achieved by concentrating on older loans first. This tool is useful for spotting patterns, like persons who routinely put off payments. and evaluation of the bad debt risk Businesses can take remedial action to lessen cash flow limitations and preserve financial stability by routinely examining expiration schedules.
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