Guide
Reading an invoice aging report
An aging report lists unpaid invoices by how long they have waited. It is the single page that tells a small carrier whether next week's fuel is covered. Here is how to read one and what to do about each bucket.
Where the money is sitting
An aging report groups open invoices by how old they are. The bars on the left of the chart are normal waiting. The bars on the right need a person and a phone.
Total open matters less than how much sits past 45 days. Track that one number every month.
| Age | What it usually means | First action |
|---|---|---|
| 0 to 30 days | Normal waiting for most terms | Confirm the broker received the invoice and the packet. A short note costs nothing. |
| 31 to 45 days | Past most terms, or stuck in a queue | Call accounts payable. Ask for the status and what is missing. |
| 46 to 60 days | A dispute, a missing document or a short pay no one told you about | Ask in writing. Resend the packet. Check the remittance for partial payments. |
| 61 to 90 days | A real problem with the invoice, or with the broker | Escalate to a named contact. Decide whether to keep hauling for this account. |
| Over 90 days | Collection territory, and some agreements limit your time to dispute | Review the agreement. Consider professional help. Stop adding exposure. |
Buckets are a convention, not a rule. Use the terms in your own agreement.
Where does the clock start?
Reports count from the invoice date. Your terms may count from something else: delivery, receipt of a complete packet or approval. If a broker says payment runs from receipt of a complete POD, an invoice with a missing POD has not started its clock. Know which one you are being measured against.
Two numbers to track monthly
share past 30 days = unpaid over 30 days / total unpaid days sales outstanding = unpaid balance / revenue billed in the period x days in the period
The first tells you how much is stuck. The second tells you how long your money takes on average. Watch the trend.
A weekly routine, 30 minutes
- Update payments from the bank and remittances. Mark partial payments, not just paid or unpaid.
- Sort by age. Start with the largest invoices past 30 days.
- For each, write the next action and the date. Put it where the person who will do it can see it.
- Note any short pays and the reason given.
- Check the sum past 30 days against last week.
Paste your list into the invoice aging tool to get the buckets in seconds. For who pays slowest, use broker payment delay.
Questions
Does factoring change aging?
It changes who is waiting. A factor advances most of the invoice, then waits for the customer. Slow invoices still cost you through fees that grow with time. See the factoring cost comparison.
Should I add interest or late fees?
Only if your agreement allows it. Many do not, and asking can strain a relationship you need.
Is a slow payer always a bad customer?
Not always. A broker that pays on day 45 every time is predictable. A broker that pays on day 20 or day 90 depending on the week is harder to plan around.
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