An Ageing Report Tells You Which Invoices Are Overdue. It Does Not, By Itself, Tell You What To Do Next.
Effective receivables review begins by identifying the cause of each material delay. An invoice may be awaiting approval, missing delivery evidence, subject to a pricing dispute or past its agreed payment date without a response.
A practical collection record should show:
- The amount and original due date
- The reason payment is delayed
- The person responsible for resolving it
- The next action and follow-up date
- A realistic expected collection date
Where the business caused the delay through an incorrect invoice or missing document, correct it promptly. Where the customer has committed to a payment date, record and verify that commitment. Feed the revised collection expectation into the cash-flow forecast.
Move from “how old is the invoice?” to “what is holding up payment, and who will resolve it?”