What Is Invoice Aging?
A metric that tracks how long invoices have been outstanding, grouped into time buckets.
Detailed Explanation
Aging buckets such as 0-30, 31-60, 61-90, and 90+ days highlight collection risk. It is the basis for prioritizing follow-up efforts.
Example
The invoice aging report shows $12k in the 61-90 day bucket, triggering escalated collection calls.
Why It Matters
Early visibility into aging patterns prevents bad debt and improves cash flow forecasting.
Related Resources
Related Metrics & KPIs Terms
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