Learning objective: Use aging reports to identify collection risks and payment problems, treating family receivables and State (CCS) receivables separately.

An aging report lists every unpaid amount and sorts it by how long it has been outstanding. Harbor Oak uses four groups, often called buckets:

• Current (0–30 days)
• 31–60 days
• 61–90 days
• Over 90 days

The older a balance gets, the less likely it is to be collected. The most useful habit is to compare the same report across several dates and watch which accounts move into older buckets.