Key takeaways
What this article covers, in order:
- The report most owners only open when something's wrong
- What the columns mean
- A worked example
- Turning the report into a chasing plan
- Checks before you chase anyone
- Useful numbers to track over time
An aged debtors report lists every customer who owes you money and sorts what they owe by how overdue it is: current, 1 to 30 days late, 31 to 60, 61 to 90 and over 90. It's the quickest way to see who's holding your cash and which invoices need chasing first. Below is a worked example and a plain routine for turning the report into money in the bank.
The report most owners only open when something's wrong
Jo runs a small commercial cleaning firm in Leeds. Her bank balance has been sliding for two months, even though she's busier than ever. She finally opens the aged debtors report on 6 Oct 2026 and it's all there in one screen: £15,680 owed, and almost £5,500 of it more than a month late.
None of it was hidden. She just hadn't looked.
What the columns mean
Each invoice sits in one column based on how far past its due date it is (some reports age by invoice date instead; check which yours uses, because it changes the picture a lot).
- Current: not yet due. Nothing to chase.
- 1 to 30 days: late, but often just slow admin. A friendly reminder usually does it.
- 31 to 60 days: the customer has had at least one reminder or should have. Time to pick up the phone.
- 61 to 90 days: something's wrong. A dispute, a cash problem, or the invoice went to the wrong person.
- Over 90 days: at real risk. Decide whether to escalate, agree a payment plan or start thinking about writing it off.
A worked example
Here's Jo's report as at 6 Oct 2026. Customers are illustrative.
| Customer | Current | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | Total |
|---|---|---|---|---|---|---|
| Lettings agency | £2,400 | £1,200 | £0 | £0 | £0 | £3,600 |
| Dental practice | £0 | £3,150 | £1,800 | £0 | £0 | £4,950 |
| Local gym | £1,650 | £0 | £0 | £0 | £0 | £1,650 |
| Print firm | £0 | £0 | £0 | £2,200 | £0 | £2,200 |
| Office managers | £960 | £0 | £0 | £0 | £1,480 | £2,440 |
| Vets practice | £0 | £840 | £0 | £0 | £0 | £840 |
| Total | £5,010 | £5,190 | £1,800 | £2,200 | £1,480 | £15,680 |
Rows add across, columns add down, and both routes give £15,680.
What Jo reads from it
£5,480 is more than 30 days overdue (£1,800 + £2,200 + £1,480). That's over a third of everything she's owed, and it explains most of the cash squeeze.
The dental practice has a pattern. £1,800 is 31 to 60 days late and another £3,150 has just tipped overdue. They're not refusing to pay; they're paying later each month. A call to their practice manager to check the invoices are going to the right inbox is the first move.
The print firm has gone quiet. One £2,200 invoice, now over 60 days late, and nothing since. That's either a dispute nobody has mentioned or a customer in trouble. Either way, it needs a phone call this week, not another email.
The office managers are mixed. They're paying current invoices but there's an old £1,480 sitting over 90 days. In Jo's experience that usually means a specific invoice was queried and never resolved. Find out what the query was.
The lettings agency, the gym and the vets are fine. A bit late in places, nothing worrying. A standard reminder covers it.
Turning the report into a chasing plan
The report is only useful if it changes what you do on Monday morning. A simple approach:
| Age | Action | Who | When |
|---|---|---|---|
| Due in 7 days | Friendly "heads up" email | Automatic reminder | 7 days before due |
| 1 to 30 days | Reminder with invoice attached | Automatic reminder | 1, 7 and 14 days after due |
| 31 to 60 days | Phone call, confirm any queries | Owner or bookkeeper | Weekly until paid |
| 61 to 90 days | Formal letter, agree a date or plan | Owner | Once, then follow up |
| Over 90 days | Decide: escalate, payment plan or write off | Owner, with accountant | Monthly review |
Most of the money comes back in the first two rows. The phone calls are where the stuck stuff moves.
Checks before you chase anyone
Nothing ruins a customer relationship like chasing an invoice they've already paid. Before you send anything firm:
- [ ] Reconcile the bank up to yesterday, so recent payments are matched
- [ ] Check for unapplied payments or credits sitting on the customer's account
- [ ] Look for part payments that were matched to the wrong invoice
- [ ] Make sure any credit notes you agreed have actually been raised
- [ ] Confirm the invoice went to the right contact and address
If your aged debtors report hasn't been reconciled against the bank, it's a list of invoices, not a list of debts. That's the single biggest reason owners feel awkward chasing.
Useful numbers to track over time
You don't need many. Two do most of the work.
Overdue percentage. Overdue total divided by total owed. Jo's is (£5,190 + £1,800 + £2,200 + £1,480) ÷ £15,680 = £10,670 ÷ £15,680, about 68%. That's high, though most of it is only in the first overdue bucket. Watch whether it falls month on month.
Debtor days. Roughly how long customers take to pay on average. A simple version: total owed ÷ credit sales for the last 90 days × 90. If Jo invoiced £36,000 over the last 90 days, that's £15,680 ÷ £36,000 × 90, which comes to about 39 days. On 30-day terms, that tells her customers are paying around nine days late on average.
Track both monthly. The trend matters more than any single figure.
When to think about a write-off
Some debts don't come back. If a customer has gone into liquidation, disappeared or it simply isn't worth pursuing, the bookkeeping is to write the debt off to a bad debt expense so your books stop showing money you won't get. Keep notes of what you tried. Whether and when a write-off affects tax is a question for your accountant, so mention it at year end.
A middle ground for doubtful (but not hopeless) debts is a provision, which your accountant can set up at year end if needed.
How HelloBooks helps
HelloBooks includes an aged debtors (AR ageing) report on every plan, Free included, alongside aged creditors. You can send invoices and set unlimited email payment reminders on Free, so the first two rows of the chasing table can run without you remembering.
Because customer payments come in through your Open Banking feed (or a CSV statement import) and are matched on the reconcile screen with an AI suggestion on each line, your ageing reflects what's actually been paid. On Pro, AI Analysis runs on every report, including this one, and you can invite your bookkeeper so someone else can make the calls. See invoice software and bookkeeping features for the detail.
FAQs
What's the difference between aged debtors and aged creditors?
Aged debtors shows money customers owe you. Aged creditors shows money you owe suppliers. Same layout, opposite direction. Read them together to see your short-term cash position.
How often should I run an aged debtors report?
Weekly if you invoice a lot or cash is tight, monthly at a minimum. Run it after you've reconciled the bank so recent payments are already applied.
Why does my aged debtors total not match my balance sheet?
It should. If it doesn't, look for payments posted straight to income instead of against an invoice, unapplied credit notes, or journal entries hitting the debtors account directly. Your bookkeeper can help find it.
Is ageing by due date or invoice date better?
By due date is more useful for chasing, because it shows how late something really is. Ageing by invoice date makes every invoice look older, which can be handy for spotting customers on long terms but can frighten you unnecessarily.
What's a reasonable debtor days figure?
It depends on your terms and your sector. A good rule is to compare it with your standard payment terms. If you offer 30 days and debtor days are in the high 40s, customers are routinely paying late and it's worth tightening your process.
Ten minutes with this report every week is cheaper than an overdraft.
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