Definition of Aging schedule:
An aging schedule often categorizes accounts as current (under 30 days), 1-30 days past due, 30-60 days past due, 60-90 days past due and more than 90 days past due. Companies can use aging schedules to see which bills are overdue and which customers it needs to send payment reminders to or, if they are too far behind, send to collections. A company wants as many of its accounts to be as current as possible because the longer the account is delinquent, the likelier it is it will never be paid, leading to a loss. .
Table that classifies accounts payable or accounts receivable according to their dates. It helps in analyzing which payments are behind their due date, and by how many days. See also accounts payable aging and accounts receivable aging.
An aging schedule is an accounting table that shows a company’s accounts receivables, ordered by their due dates. Often created by accounting software, an aging schedule can help a company see if its customers are paying on time. It’s a breakdown of receivables by the age of the outstanding invoice, along with the customer name and amount due. .
How to use Aging schedule in a sentence?
- Aging schedules are accounting tables companies use to see whether payments are being made or received in a timely fashion.
- Aging schedules can help companies spot problems with their credit policies.
- These schedules can be customized to include whatever time frame the company wants to track, but commonly include under 30 days, 1-30 days past due, 30-60 days past due, and more than 90 days past due.
- Using aging schedules can help companies spot cash flow problems before they become an even bigger issue.
Meaning of Aging schedule & Aging schedule Definition