Guides · Bookkeeping
Aging analysis, explained
Aging analysis answers a question a single outstanding total cannot: not just how much is owed, but for how long. It groups unpaid amounts into buckets by age, so the oldest and riskiest stand out.
How aging buckets work
An aging report sorts each outstanding amount by how long it has been due — current, then successive bands of overdue, such as up to 30 days, 30 to 60, 60 to 90, and beyond. The same idea works for receivables and for payables.
Reading down the buckets shows where the money is stuck: a total that looks fine can hide a large, very old balance that a single number would never reveal.
Why it tells you who to chase
The oldest buckets are usually the most at risk, so aging tells you where to spend collection effort first. A receivable slipping from one band to the next is an early warning worth acting on before it hardens.
For a supplier to certain buyers, the age of a receivable also matters for statutory reasons, which makes the count more than a management convenience.
How Lekha ages every bill
Lekha shows buyer-wise aging and flags bills crossing the MSME 45-day clock — days since acknowledgement, with the overdue ones marked — so you can see which buyers to chase before a small delay becomes a large one.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is aging analysis?
- A way of grouping outstanding amounts by how long they have been due, into buckets, so the oldest and riskiest balances stand out from the total.
- How do aging buckets work?
- Each outstanding amount is sorted by age — current, then bands of overdue such as up to 30 days, 30 to 60, and beyond — for both receivables and payables.
- Why is aging useful?
- It shows where money is stuck and who to chase first, and it gives an early warning as a balance slips from one band to the next.