Accounts Receivable Aging Calculator
Calculate aging of receivables and estimate bad debt allowance based on historical data
About this calculator
The Accounts Receivable Aging Calculator helps businesses track overdue payments and estimate potential bad debt losses. By categorizing outstanding invoices by age (30, 60, 90+ days past due), it provides crucial insights into collection performance and cash flow risks. This tool uses historical collection data to calculate realistic bad debt allowances, enabling better financial planning and more accurate financial statements for improved business decision-making.
How to use
Enter your outstanding receivables amounts in each aging category (current, 30 days, 60 days, 90+ days past due). Input your historical bad debt percentages for each category based on past collection experience. The calculator will automatically compute your total receivables, weighted average days outstanding, and estimated bad debt allowance.
Frequently asked questions
What is accounts receivable aging?
It's a method of categorizing outstanding customer invoices by how long they've been overdue, typically in 30-day intervals.
How do I determine bad debt percentages?
Review historical data showing what percentage of receivables in each age category ultimately became uncollectible over previous periods.
Why is aging analysis important?
It helps identify collection problems early, improves cash flow forecasting, and ensures accurate financial reporting through proper bad debt reserves.