Business 101: What Do The Terms “Aging” and “Arrears” Mean?

There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.

Well, here at BBH we’re going to give you the answers to the questions you might have been too embarrassed to ask.

Here are the terms for today:

Aging is the measuring of the time between today’s date and when payment was due on an invoice. When a payment is overdue it is usually described in the terms like: thirty days, sixty days, and ninety days overdue.

Arrears is a term that’s often used in relation to taxes and it is used to describe an that is  overdue.

Photo by skagman

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• Business 101: What Do The Terms Target Market, Retail Sales, And Revenue Mean? (baybusinesshelp.com)