The Advantages of Aged Payables Reports


Good business owners know the importance of managing cash and rely on the accounts payable aging report to achieve this goal. The aged accounts payable report tells users the amount of money owed to each vendor and when the amounts are due. Careful attention to this report helps managers determine how much to pay each vendor and also ensures they are paid in a timely fashion.

Manage Accounts Payable

  • Managers use the accounts payable aging report to identify unusual or duplicate invoice amounts and to resolve potential disputes over vendor invoices and payments. Managers can use a customized aging report to monitor costs and activity associated with a particular job or project, and to analyze discount terms and trade credit with suppliers to make future business decisions.

Cash Flow Management Visibility

  • The invoices on the aged accounts payable report are sorted and consolidated into categories, based upon their ages in the accounting system. These aging categories segregate bills by due dates, such as from 0-30 days, 31-60 days or 61-90 days. Armed with aging information for all outstanding invoices, this helps managers better allocate cash reserves to meet the company's current financial obligations. This is particularly advantageous for small-business owners who are strapped for cash, face unexpected expenses or have slow months in business. For example, a small-business owner can choose to cover an unexpected expense instead of taking advantage of a vendor discount for the early payment of an invoice, while still knowing when to pay the vendor within a 30-day cutoff.

Complete List of Outstanding Invoices

  • While managers can see the total outstanding payables balance by viewing the liability section of the company's monthly balance sheet, the balance sheet does not itemize the invoice detail by customer that makes up the total balance. The payables aging report gives business owners the invoice detail behind the balance sheet payables total, and the peace of mind in knowing how much cash is needed for upcoming bills for the next few months. Management also relies on the payables aging report to identify which checks to cut for each vendor when it's time to pay the company's bills.

Flexible and Current

  • Unlike the monthly balance sheet that shows the payables balance at month or period end, the aging payables report includes the latest unpaid invoices that have been posted to payables even if those invoices are posted just a few minutes prior to running the payables report. Aging reports can be customized to business and management needs and include various fields such as invoice number, vendor terms, and invoice days outstanding in 30-, 60-, 90- or 120-day increments.

Related Searches


  • Photo Credit RayaHristova/iStock/Getty Images
Promoted By Zergnet


You May Also Like

  • What Are Trade Payables?

    Trade payables can be simply defined as monies owed by a business to its suppliers. When a business operates, it must spend...

  • Aged Debt Analysis

    Aged debt analysis, often called an accounts payable aging report, is a list of all accounts-payable accounts, the balances owed and the...

  • How to Reconcile Accounts Payable

    Accounts Payable or AP are classified as current liabilities and reported on the balance sheet. In order to close the books at...

  • How to Loan Someone Money With Legal Guaranteees

    Establishing a legal framework before lending money to anyone, even a family member or friend, is important. You may write up a...

  • How to Organize Payables by Due Date

    All companies have bills resulting from their operations, such as utilities or the acquisition of materials for use in business. Organizing payables...

  • What Are A/P Aging Reports in Accounting?

    Most accounting systems offer A/P (accounts payable) aging reports to help managers control current liabilities. This report shows what a company owes,...

  • List of Accounts Payable Reports in SAP

    You can access four types of information using the list of Accounts Payable reports in SAP. The company stands for Systems, Applications...

  • List of Payables in Business

    A payable is a liability that appears on the balance sheet that shows the amount of money a business owes to another...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!