Accounts receivable (AR) aging report lists unpaid customer invoices; a primary tool used by collections staff to determine which invoices are overdue for payment. The AR collection process is used to evaluate how long customers take to pay their invoices.
This process flow outlines the AR aging and collection process. It outlines steps such as:
- Reviewing balances aged over 30, 60 and 90 days
- Coordinating payment status with the claims company
- Coordinating payments with customers
- Writing off appropriate accounts
This document can be used as a general guide to understand and review the AR aging and collection process. Organizations should continuously update and monitor the processes included in this document to ensure that they accurately reflect business operations.