What aging schedule buckets does Xero recommend for AR reports?

✓ Accepted answer

Xero recommends using five specific date range buckets to categorize unpaid invoices in a standard accounts receivable aging report. These buckets help you identify which customers owe money and how overdue those amounts are, enabling you to prioritize collection efforts effectively.

• Current: This bucket includes invoices that are not yet due or have just reached their due date. It represents your most recent, healthy receivables.
• 1-30 days past due: Invoices that are slightly overdue. This is often the first stage where automated reminders or gentle follow-up emails are sent to prompt payment without escalating tension.
• 31-60 days past due: Invoices significantly overdue. At this stage, more direct communication is recommended, such as phone calls or formal statements, to understand why payment has not been received.
• 61-90 days past due: Invoices are now in a critical state. Many organizations escalate to formal demand letters or involve collections teams here, as the risk of non-payment increases substantially.
• 91+ days past due: These are the oldest unpaid invoices, often categorized as potentially bad debts. This bucket is critical for assessing whether to write off the amount or engage legal counsel.

According to Xero's 2026 guidance, regularly reviewing these five buckets allows you to spot cash flow issues early and tailor your outreach strategy to the age of the debt.

admin · 2026-10-09 15:21:17