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Prepare an ageing schedule

Learn how to prepare an ageing schedule

An ageing schedule is a way of finding out if customers are paying their bills within the credit terms outlined in the company’s credit terms.

The ageing schedule is a table that shows a summarised breakup of AR into different time brackets. It is called an ageing schedule because it ranks accounts receivable according to their age (i.e. into slabs such as not yet due, 30 days overdue, 60 days overdue, 90 days overdue, etc.).

Table of Ageing schedule details. Refer to Tab 4 of the provided spreadsheet or PDF provided for further detail. Source: Accounting for Management [1]

References

1. Accounting for Management. Estimating allowance for doubtful accounts by aging method [Internet]. Available from https://www.accountingformanagement.org/allowance-for-doubtful-accounts-by-aging-method/

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Financial Analysis for Business Decisions: Cash Flow Management

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