Accounts Payable & Receivable

Aging Analysis

21 question(s)

How do you use aging trends to set collection targets and staffing?

Advanced
Trending bucket movements and roll-rates over time shows whether overdue balances are growing or shrinking, informing realistic collection targets, workload, and staffing. Rising later buckets may justify more collectors or process changes; improving trends validate current effort. Targets tie to DSO, CEI, and bad-debt goals.
Real-world example A three-month upward trend in the 60-90 bucket justifies adding a collector and tightening credit before losses grow.

Common follow-ups: What do worsening bucket trends imply? | How do targets link to DSO and CEI?

Collections & Bad Debts Credit Control Aging Analysis