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What is an Accounts Receivable Aging Report?

An accounts receivable aging report is a financial document that provides a summary of a company's outstanding invoices and the length of time each invoice has been outstanding. It is commonly used by businesses to track and manage the collection of their accounts receivable, which refers to the money that is owed to the business by its customers for goods or services that have been provided but not yet paid for.

An accounts receivable aging report typically includes a list of the company's customers, along with the amount of money owed by each customer and the number of days the invoice has been outstanding. The report may be organized by age group, with invoices that are less than 30 days old in one group, invoices that are 30 to 60 days old in another group, and so on. This allows the business to see which invoices are overdue and which customers may be at risk of defaulting on their payments.

Why MSP Owners Should Care About Their A/R Reports

The accounts receivable aging report can be a useful tool for MSPs to manage their cash flow and ensure that they are collecting payment from their clients in a timely manner. It can also help an MSP identify any potential issues with their billing or payment processes and make necessary changes to improve the efficiency and effectiveness of their collections efforts.

In addition to tracking outstanding invoices, an accounts receivable aging report can also be used to identify potential issues with specific clients. For example, if a client consistently has overdue invoices, it may be a sign of financial trouble or a lack of willingness to pay. In such cases, the MSP may need to consider taking steps to protect their interests, such as requiring a payment method in advance for future services or using software to automate your accounts receivable process.

Overall, an accounts receivable aging report is an important tool for businesses to track and manage their accounts receivable and ensure that they are being paid in a timely manner. By regularly reviewing this report, businesses can identify and address any issues with their payment processes and protect their financial interests.

Best Practices for Managing Your Accounts Receivables

1. Use a Master Service Agreement with payment terms: It's important to have a Master Service Agreement (MSA) with your clients which outlines important terms of your business arrangement - including when payment is due, the payment methods that are accepted, and any penalties for late payment. By setting clear terms upfront, you can help ensure that your clients know what to expect and that you are paid in a timely manner.

2. Invoice promptly: Sounds intuitive, but make sure to send out invoices as soon as possible and on consistent timelines every month. The longer you wait to invoice, the longer it will take to receive payment.

3. Follow up on overdue invoices: If an invoice becomes overdue, it's important to follow up with the client as soon as possible. This can take away valuable resources from your team so it’s best to automate using software.

4. Offer multiple payment options: By offering a range of payment options, such as credit card, ACH, net terms or financing, you can make it easier for your customers to pay you. This can help improve your cash flow and reduce the likelihood of overdue invoices.

5. Use accounts receivable software: FlexPoint is a payments automation platform for MSPs that will automate your accounts receivable. Using FlexPoint you can stop worrying about your AR report and start investing in growing your business. FlexPoint takes away the burdensome and awkward task of having to chase down payments and remembering to send out invoices on time. With FlexPoint you can offer your clients multiple payment options including the ability to pay over time with our FlexLine product.


Accounts receivable is a critical part of every MSP’s business and unfortunately a massive headache for most MSP owners. FlexPoint makes it so that you don’t have to worry about your accounts receivable by automating the whole process from invoicing to reconciliation. Reach out to book a demo and learn more about how FlexPoint can automate your payments.