What is an Accounts Receivable Aging Report?
Understand what an Accounts Receivable Aging Report is, how Ghanaian SMEs use it to track overdue invoices, and how it qualifies you for invoice discounting.
Defining the Accounts Receivable Aging Report
An Accounts Receivable Aging Report (also known as a debtor aging schedule) is a core financial accounting document that categorizes a company’s unpaid customer invoices according to the length of time they have been outstanding.
In standard Ghanaian business accounting, the aging schedule splits corporate customer receivables into defined operational buckets:
- Current: Invoices within standard contractual terms (e.g., 1–30 days).
- 31–60 Days Overdue: Invoices requiring active follow-up from internal accounts.
- 61–90 Days Overdue: High-risk credit exposures that strain liquidity.
- 90+ Days Overdue: Severely delinquent accounts requiring credit suspension or legal remedies.
Why the Aging Schedule is Critical for Ghanaian SMEs
- Early Detection of Cash-Flow Gaps: Monitoring aging schedules prevents cash flow bottlenecks before payroll or supplier inventory commitments fail.
- Evaluating Debtor Concentrations: It reveals whether an unsustainable percentage of your cash flow depends on one or two slow-paying corporate clients.
- Underwriting for Invoice Discounting: Financing platforms like Built Float inspect aging reports to assess buyer payment discipline and determine the seller's working capital health.
How Built Float Uses Aging Data
When evaluating a supplier for invoice finance, Built Float reviews debtor aging to verify that corporate buyers pay reliably within predictable windows. Private B2B debtors with predictable historical payment profiles qualify for maximum advance rates (up to 80%) and low discount fees (4% to 5%).
Conversely, invoices lingering beyond 90 days are excluded, and under Built Float’s recourse structure, unpaid invoices exceeding 30 days past the due date become subject to a standard 3% late fee.
Frequently Asked Questions
How often should a Ghanaian SME generate an aging report?
At least weekly or monthly to maintain clear oversight of customer payment trends and identify delayed payments early.
Can I discount invoices that are already 60 days overdue?
No. Built Float finances current, undisputed invoices issued for freshly delivered goods or services, rather than aged delinquent debts.
Does my accounting software generate this report automatically?
Yes. Platforms like Built Accounting, QuickBooks, and Xero produce aged receivables reports with standard 30-day interval buckets.