Understanding Your Cashflow with the AP Aging Chart
The AP Aging Chart is a powerful tool that can help you understand your cashflow and be a good indicator of cashflow health. In this article, we'll explain what the AP Aging Chart is and how you can use it to manage your finances.
What is the AP Aging Chart?
The AP Aging Chart is a visual representation of your accounts payable (AP) aging. It shows you how much money you owe to your vendors and how long those payments have been outstanding. The chart is divided into different time periods, such as 30 days, 60 days, 90 days, and 90+ days, to help you see which payments are overdue and by how much.
Why is the AP Aging Chart important?
The AP Aging Chart is important because it gives you a clear picture of your cashflow. A healthy cashflow means that you have enough money coming in to cover your expenses, including your bills. By regularly checking the AP Aging Chart, you can identify any potential cashflow issues and take action to address them before they become a problem.
How to use the AP Aging Chart
Displayed while hovering, you'll see the vendor’s name and the amount currently owed to them. (On click, you will be taken to an "all bills" view, where you can filter by date range and bill status.)
To view details on a specific vendor you owe money to, you can filter the chart by vendor.
Lastly, you can generate and export an AP aging report file. This is an identical functionality to the "export report" option from the Docs and Reports page.