How to read an aged debtors report — and what to do with each column

What the report shows

An aged debtors report lists every customer with an unpaid balance and splits it into columns by age — typically current, 1–30, 31–60, 61–90 and over 90 days overdue. Every mainstream accounting package produces one. It is the single best view of where your cash is stuck.

Reading it properly

• Sort by the oldest column first: the older a debt, the less likely it is to be paid in full.
• Look for patterns: one customer spread across every column usually means a process problem on their side, or a dispute.
• Check that 'overdue' is measured from the due date, not the invoice date.
• Remove credit notes and unallocated payments before chasing, so you never ask for money already paid.

What to do in each bucket

• 1–30 days: a factual reminder with a copy of the invoice and how to pay.
• 31–60 days: a firmer reminder stating your right to statutory interest and compensation on business debts ^[1][2].
• 61–90 days: ask directly whether there is a problem with the invoice, then set a final date.
• 90+ days: consider formal recovery, such as a claim through the courts ^[1].

Putting a figure on it

Statutory interest runs daily at 8% above the base rate in force on the relevant reference date ^[2]. The Small Business Commissioner's calculator works it out for you ^[3]. Including the figure in a reminder turns a vague request into a concrete, growing cost.

Automating it

Nemexio reads the same data as your aged debtors report and acts on it daily: each invoice gets the reminder that matches its age, with interest calculated to the day for business customers.