From Aging Reports to Predictable Cash Flow

Static aging reports tell you where you've been, but they don't help you predict where you're going. Modern AR management requires a forecasting-first approach that turns historical data into actionable predictions.

Beyond Traditional Aging Reports

Traditional aging reports categorize receivables by how overdue they are (30, 60, 90+ days). While useful for compliance, they're backward-looking and don't help you:

• Predict which invoices will pay on time
• Identify which customers need proactive outreach
• Forecast cash collections for planning
• Optimize collection efforts for maximum impact

Building a Forecasting Workflow

A forecasting workflow analyzes historical payment patterns to predict future behavior:

1. Customer Segmentation: Group customers by payment behavior, not just invoice age
2. Pattern Recognition: Identify early warning signs of payment delays
3. Prioritized Outreach: Focus collection efforts on high-impact accounts
4. Cash Flow Modeling: Build rolling forecasts based on predicted collections

With the right tools and processes, you can transform AR from a reactive function into a strategic driver of cash flow optimization.