What your Aged Receivables report tells you
How to read the report and act on it
The Aged Receivables report in Xero (under Reports) shows all outstanding sales invoices grouped by how long they have been unpaid.
Reading the report
Invoices are grouped into columns: current (not yet due), 1-30 days overdue, 31-60 days overdue, 61-90 days overdue, and 90+ days. The older the debt, the harder it is to collect.
How to act on it
- Any invoice more than 30 days past its due date should be chased actively
- Any invoice more than 60 days overdue with no response should be escalated with a formal demand
- Any invoice more than 90 days old with no realistic prospect of collection should be written off as a bad debt (which gives a Corporation Tax deduction)
💡 Good to know: Run the Aged Receivables report at least once a month. A growing debtors balance is one of the earliest warning signs of a cash flow problem, even when the P&L looks healthy.
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