Accounts Payable Aging

What is accounts payable aging?

Accounts payable aging is a report listing outstanding vendor invoices organized by how long they have been outstanding, typically in 30-day buckets (current, 31-60 days, 61-90 days, over 90 days). For professional service firms, AP aging reports guide payment prioritization and cash flow management.

Key characteristics

• Lists unpaid vendor invoices

• Organized by age

• Shows amounts by aging bucket

• Identifies past-due items

• Supports payment planning

• Indicates vendor relationships

Why it matters for professional service firms

AP aging visibility enables strategic payment timing and prevents late payment penalties or strained vendor relationships. Ignoring aging leads to unexpected cash demands. Professional service firms should review AP aging weekly to plan payments and manage cash flow.

Real-world example

Brian reviewed weekly AP aging: current (0-30 days) $24,000, 31-60 days $8,500, 61-90 days $3,200, over 90 days $1,800—total AP: $37,500. Prioritized actions: paid 61-90-day items to prevent late fees, scheduled 31-60-day items for next week, reviewed over-90-day items (disputed invoices under resolution). Systematic review prevented surprises.