Profit tells you whether the business is making money. Ageing tells you when that money will actually arrive, and when it has to go out.
What an ageing report shows
An ageing report lists every open invoice by customer (receivables) or by supplier (payables), grouped by how long it has been outstanding. Common buckets are 0 to 30 days, 31 to 60, 61 to 90, and over 90 days.
Reading receivables ageing
- Growing older buckets mean collections are slipping, even if sales look healthy.
- One large customer in an old bucket is a concentration risk worth a direct conversation.
- Small amounts that never clear often point to disputes, short payments or unrecorded deductions.
Reading payables ageing
- Shows which supplier payments are due soon, so cash can be planned.
- Highlights old bills that may be duplicates, disputes or already paid but not recorded.
- Helps keep supplier relationships healthy by paying on agreed terms.
Why ageing depends on clean ledgers
An ageing report is only as good as the customer and vendor ledgers behind it. If receipts are not matched to invoices, or credit notes are missing, the report will show amounts that are not really outstanding.
A monthly ageing routine
- Reconcile bank receipts to customer invoices.
- Run receivables and payables ageing at month end.
- List follow-ups for overdue customers and agree who makes them.
- Plan supplier payments for the coming weeks.
Ageing in the FigureWise monthly cycle
FigureWise maintains customer and vendor ledgers, reviews ageing each month and includes it in the monthly MIS pack, so follow-ups happen while they are still easy.
