What are the disadvantage of Account Receivable Ageing Listing?

An accounts receivable aging is a report that lists unpaid customer invoices and unused credit memos by date ranges. The aging report is the primary tool used by collections personnel to determine which invoices are overdue for payment. It gives them a good idea of your receivables portfolio.

Accounts receivable aging is a periodic report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding. It is used as a gauge to determine the financial health of a company's customers. If the accounts receivable aging shows a company's receivables are being collected much slower than normal, this is a warning sign that business may be slowing down or that the company is taking greater Credit Riskin its sales practices.