Aged receivables analysis
An aged receivables analysis groups customer balances by how long they have been outstanding or overdue. Typical bands are current, 1–30 days overdue, 31–60 days overdue and older. It helps target collection work, identify disputes and estimate doubtful balances. Read the band definitions carefully because an invoice age is not necessarily the same as days past its payment due date.
Worked example
A 60-day invoice issued 45 days ago is not overdue, although it belongs in an invoice-age band of 31–60 days.
Common mistake
Age is evidence of collection risk, not automatic proof that every older balance must be written off.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |