What is A/R or Accounts Receivable Aging?

A periodic report that categorizes a company’s accounts receivable according to the length of time an invoice has been outstanding. Accounts Receivable Aging is a critical management tool as well as an analytic tool that helps determine the financial health of a company’s customers, and therefore, the health of their business. Credit memos and partially paid invoices will also be listed in the A/R Aging.

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