Accounts Receivable Aging
Categorization of outstanding receivables by how long they have been unpaid, typically in 0-30, 31-60, 61-90, and 90+ day buckets.
What is Accounts Receivable Aging?
Accounts receivable aging groups outstanding invoices and claims by how long they have been unpaid. The standard buckets are current (0-30 days), 31-60 days, 61-90 days, and over 90 days. Each bucket represents a different probability of collection and a different timeline for expected cash arrival.
In dental and medical practices, aging applies to insurance claims and patient balances. A claim in the 0-30 day bucket will likely pay within weeks. A claim in the 90+ day bucket may require escalation, resubmission, or write-off.
Aging transforms a single receivables total into a collection forecast. $120K in total receivables means something very different if $80K is current versus if $60K is over 90 days. The total is the same. The cash outlook is not. Aging connects directly to collection speed per payer. Review aging weekly and escalate claims before they cross from 61-90 days into the 90+ bucket where recovery rates drop sharply and write-offs become likely.
Why it matters
Planning cash based on total receivables without aging overstates near-term available funds. Aging tells you which money is arriving soon and which requires active follow-up or may never arrive.
Example
Total receivables: $142K. Current: $48K. 31-60 days: $52K. 61-90 days: $28K. 90+ days: $14K. Near-term expected collections: $48K in two weeks, $52K in 30 days.
How RunwayCal helps
RunwayCal tracks receivables in aging buckets with per-payer breakdowns, feeding collection forecasts with realistic timing.
Common mistakes
- 1Using total receivables without aging breakdown
- 2Not escalating claims that cross into 90+ day buckets
- 3Treating all receivables as equally likely to collect
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Aging that drives cash forecasts
RunwayCal ages receivables by payer and feeds expected collections into your cash position forecast.
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