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What is accounts receivable aging?

AR aging buckets, why it matters for cash flow, and how to query overdue invoices

Definition

What it is

Accounts receivable (AR) aging is a report that groups outstanding (unpaid) invoices by how long they have been overdue, typically in buckets of 0–30 days, 31–60 days, 61–90 days, and 90+ days. It is the primary tool for managing collections — identifying which customers owe money, how much, and how overdue their payments are. In QuickBooks Online, AR aging is available as a built-in report but cannot be queried flexibly or integrated with other data sources without exporting.

Formula

AR Aging Bucket Formula

Formula

Days Overdue = CURRENT_DATE − Invoice Due Date (for unpaid invoices only)

Group by: 0–30 days (current), 31–60 days (late), 61–90 days (very late), 90+ days (at risk). An invoice is unpaid if its balance_remaining > 0. Due date is typically invoice date + payment terms (e.g., Net 30 = due date is invoice date + 30 days).

Business impact

Why it matters

AR aging is a direct leading indicator of cash flow problems. Revenue recognised in QBO from invoiced sales does not become cash until the invoice is paid. A business with $200,000 in outstanding invoices — half of which are 60+ days overdue — has a serious collection problem that net income figures will not reveal. Regular AR aging reviews allow finance teams to prioritise collections, flag at-risk customers, and make more accurate cash flow projections.

The challenge

How most teams track this today

QBO has a built-in AR Aging Summary and AR Aging Detail report under the Reports menu. However, it cannot be filtered by custom date ranges, segmented by product type, or exported in a format that integrates easily with other business data. For businesses that want to monitor AR aging alongside Amazon or Shopify revenue, a custom query is required.

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FAQ

Common questions

What is a good AR aging profile?

Most healthy businesses have 70–80% of outstanding AR in the 0–30 day bucket (current or recently invoiced). More than 20% of total AR in the 60+ day bucket is a warning sign. More than 10% in the 90+ day bucket suggests significant collection risk — those invoices have a much lower probability of being paid in full.

How does AR aging relate to cash flow?

AR aging quantifies the gap between recognised revenue and actual cash received. If you invoice on Net 30 terms and all customers pay on time, your AR aging will be mostly current. If customers routinely pay late, you have cash tied up in receivables — meaning your bank balance is lower than your P&L net income would suggest.

Can I see AR aging alongside Amazon revenue in Taptic?

Yes. Because Taptic imports both QuickBooks and Amazon data into the same workspace, you can write queries that show outstanding AR by customer alongside their Amazon order history — useful for businesses that invoice clients for services while also selling on Amazon.

What is the difference between AR Aging Summary and AR Aging Detail in QBO?

AR Aging Summary shows totals per customer per aging bucket. AR Aging Detail shows individual invoice lines with due dates and amounts. Taptic imports the invoice-level data from QBO, which supports both summary and detail views from a single query.

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