Accounts Receivable Aging
Bucket open invoices by days past due. See your exposure and chase the right ones first.
| Client | Invoice # | Amount ($) | Invoice Date | Terms (days) | Days Out | Past Due | Bucket | |
|---|---|---|---|---|---|---|---|---|
| 15 | 0 | Current | ||||||
| 55 | 25 | 1-30 | ||||||
| 109 | 79 | 61-90 |
Total Accounts Receivable
$67,700.00
Past due: $49,200.00 (72.7%)
| Bucket | Total | % of AR |
|---|---|---|
| Current | $18,500.00 | 27.3% |
| 1-30 | $7,200.00 | 10.6% |
| 31-60 | $0.00 | 0.0% |
| 61-90 | $42,000.00 | 62.0% |
| 90+ | $0.00 | 0.0% |
Formula: days outstanding = today − invoice date. Days past due = max(0, days outstanding − terms). Buckets: Current (0 past due), 1-30, 31-60, 61-90, 90+. 31-60 day rows are highlighted amber; 61-90 and 90+ are red.
Estimates only. Not financial or legal advice on collections.
Frequently Asked Questions
What are the standard AR aging buckets?
The standard buckets in construction and most service industries are Current (within terms), 1-30 days past due, 31-60, 61-90, and 90+. Some shops add a 120+ or "doubtful" bucket. The buckets measure days past the contractual due date, not days since the invoice was sent — if you bill on net-30, an invoice dated 40 days ago is 10 days past due, not 40.
What percentage of AR in the 90+ bucket is healthy?
A well-run contractor keeps the 90+ bucket below 5% of total AR. Above 10% is a warning sign that collection processes have broken down or a major customer is in trouble. Construction tends to run higher than other industries because of retainage and disputed pay applications, so the cleaner you keep your aging the better your borrowing rate and surety capacity will be.
When should I send an invoice to collections?
Most contractors escalate at 60 to 90 days past due, after a documented sequence: 30-day past-due reminder call, 45-day written demand with copy to the bonding company or owner, 60-day final notice naming an attorney or collection agency. Before turning anything over, confirm your lien rights and the prompt payment statute in your state — leverage from a perfected mechanics lien usually beats what a collection agency can recover.
How do mechanics lien deadlines affect AR aging?
Every state sets a hard deadline to record a mechanics lien — usually 60, 90, or 120 days from the last day you furnished labor or materials. Many states also require a preliminary notice (sometimes called a 20-day notice) within the first weeks of the job to preserve those rights. If an invoice on a private project crosses 45 days past due, start tracking the lien clock immediately. Once the deadline passes you lose the lien remedy and can only pursue a regular breach-of-contract claim, which is far weaker leverage.