How to get your Aged Scale in real time

The Aged Scale: A pillar of financial management

The aged trial balance is a fundamental tool in corporate financial management, especially for credit managers and debt collectors. It is of paramount importance in meticulously compiling all outstanding customer receivables, methodically categorized by due date (invoices, credit notes, pending payments, etc.).

Transitory nature of the Customer item

It is crucial to understand that customer receivables, included in current assets on the balance sheet, are transitory in nature. Each invoice or credit note must be paid within the period agreed with the customer. Thus, the aged trial balance acts as an indicator for monitoring these processes, identifying outstanding receivables and their potential impact on the company’s cash flow and working capital requirements.

Detailed analysis of trade receivables

Organized according to invoice due dates, the aged trial balance provides both a quantitative (amount of receivables) and qualitative view of customer receivables. It helps identify unpaid receivables that could affect cash flow and generate losses, particularly in the event of prolonged delay, thus reducing the chances of recovery.

Structure of the Aged Scale

The typical structure of the aged trial balance comprises several columns, generally five to eight, corresponding to the different stages in the collection process, from preventive dunning to contentious collection. These columns provide a graded assessment of the criticality of the situation, and help to quickly identify the most problematic receivables requiring immediate attention.

Strategic use of the Aged Scale

Credit managers use aged trial balances to assess the financial health of their customer portfolios and implement targeted recovery actions to preserve cash flow and profitability. Strategic use of this tool can help anticipate payment problems and act proactively to minimize financial risks.

Integration of aged trial balances in SaaS collection software

In collection and credit management software such as ASTON AI, the aged trial balance plays a central role, providing a real-time view of outstanding receivables. It can be customized according to various analytical and customer criteria, enabling fine-tuned and precise debt collection management.

Analyze customer risk

With a customizable and exportable aged trial balance, analyze your receivables in depth:

• Immediate identification of customers in arrears
• customizable segmentation of delay periods
• one-click export to excel or pdf

Evaluation of collection performance

The aged trial balance can also be used to assess collection performance, by highlighting the late payment rate broken down by tranche. This detailed analysis makes it possible to distinguish between recent and long-standing delays, and provides guidelines for resolving payment problems effectively and efficiently.

Conclusion: An aged trial balance calculated in real time is an essential tool for debt collection and credit management.

The aged trial balance is therefore an essential tool for managing receivables and debt collection. It helps to organize recovery actions, monitor performance and anticipate financial risks, thereby contributing to the company’s stability and growth. Its strategic use can make the difference between effective financial management and avoidable losses.