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What is an Aged Accounts Payable Report?

An aged accounts payable report, sometimes called an accounts payable aging report, outlines how many payments you have that are coming due. An ideal report shows you the due dates of numerous invoices. The goal of an aged accounts payable report is to give your business an idea of how much money you need to cover shortfalls in the coming weeks.

How an Aged Accounts Payable Report Works

As an example, you can custom-make an aged accounts payable report by showing columns for invoices due in less than 30 days, those due between 30 and 60 days, one for between 60 and 90 days, and invoices due greater than 90 days into the future. The report shows how many invoices are due within those time frames, the value of those invoices, and who owes them.

Elements of an aged accounts payable report include:

  • The date you run the report. Usually this happens as an accounting period, such as one month, comes to an end.
  • Customer names down the left side. If customers owe more than one invoice that is coming due, the report shows this.
  • A column for invoices currently overdue, one for invoices due 30 days from now, and columns for invoices in one-month intervals.
  • The number of columns depends on how far out into the future you want to run the report.
  • The right-most column shows the totals for each customer and the grand total at the bottom.
  • The bottom-most row shows the value of each time frame, with a grand total at the bottom-right.

Why Does an Aged Accounts Payable Report Matter?

An aged accounts payable report allows your business to identify deficiencies or inefficiencies in your invoicing or collections system. The report can give you ideas for potential improvement regarding cash flow and dealing with delinquent customers. The report can maintain relationships with suppliers, clients, and suppliers, as it provides notification for past-due accounts and investigation into the reason why an invoice is past due can occur.

QuickBooks Online has several features that can help with an aged accounts payable report. Send invoices quickly and easily and accept online payments to make your payment processing faster. Set up your invoices with email notification so you stay on top of invoices coming due. Run custom reports in QuickBooks to gauge the overall health of your finances and your customers’ invoices.

More than 4.3 million customers use QuickBooks. Join them today to help your business thrive for free.

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