Accounts Receivable Aging Explainer

AR aging for a services business. Buckets: Current (not yet due), 1-30, 31-60, 61-90, and 90+ days overdue. Healthy spread: most of the balance sits in Current and 1-30; little should reach 90+. Signals: 31-60 means a reminder was missed or the client is slow — send a firm follow-up; 61-90 suggests a real collection risk — call, not just email; 90+ often needs a payment plan or escalation, and may become a write-off candidate. Suggested actions per bucket: Current — no action; 1-30 — friendly reminder; 31-60 — firmer email and restate terms; 61-90 — phone call; 90+ — formal notice and consider a plan. This is an educational explainer, not financial advice.