AR Aging Report Explained: What It Is, Why It Matters and How to Use It

Busy dental teams live in their practice management system all day, but many still feel unsure when someone asks a simple question:

“Can you show me your AR aging report and tell me if it looks healthy?”

Together, let’s turn that report from something you “pull for the CPA” into a tool your team actually uses to protect cash flow, reduce stress around month end, and give the doctor a clear picture of the practice’s financial health.

We will focus on AR aging in a dental setting and keep it practical enough that you could share this with a new front office hire or even a doctor who “doesn’t do numbers.”

For many practices, AR aging is also the missing link between production and what a dental insurance billing service can actually collect.

What Is AR Aging In A Dental Practice?

AR aging (short for accounts receivable aging) is a way to look at all the money patients and insurance companies still owe your practice, grouped by how long it has been outstanding.

In practice, an AR (Accounts Receivable) aging report provides a snapshot of outstanding balances by showing:

• Which accounts have unpaid balances
  
• The total amount owed
  
• The length of time each balance has been outstanding

Most systems break this into aging buckets, such as:

• Current
• 0 to 30 days
• 31 to 60 days
• 61 to 90 days
• Over 90 days

You will see this called many things that all mean almost the same thing:

• AR aging report
• Accounts receivable aging report
• AR aging schedule
• Accounts receivable aging schedule
• AR aging report or account receivable ageing report (alternate spelling)

No matter what your software calls it, the goal is simple. The aging of accounts receivable method helps you answer one key question:

“How much of our AR is new and normal, and how much is old and at risk of never being collected?”

How Does An Accounts Receivable Aging Report Work?

Think of your AR aging schedule as a set of buckets sitting under your schedule and claims.

Every time you post a charge that is not fully paid:

• That balance drops into the “current” bucket.
• As days pass without full payment, that balance slides into older buckets.
• If you work the balance, get paid, or write it off correctly, it leaves the report.

A basic accounts receivable aging report example might show:

Even this simple aging accounts receivable view tells you a lot:

• Most of the money is in the current and 0–30 day buckets, which is healthy.
• The over 90 days bucket is not huge, but patient balances over 90 days may be hard to collect without a clear plan.

The aging of accounts receivable method is used in accounting to estimate how much of your AR is collectible and how much may become bad debt.

In a dental office, it doubles as a daily and weekly action list for your billing team.

Why Does AR Aging Matter For Dental Cash Flow?

If production is your practice’s heartbeat, AR aging is its blood pressure. When AR aging gets out of control, the practice feels it:

• Payroll becomes stressful.
• The doctor asks, “We are so busy, where is the money?”
• Front office staff feel blamed but do not have clear data to explain what is happening.

Here is why AR aging matters so much:

1. Cash flow predictability
   A clean AR aging report shows when you can reasonably expect money to come in from insurance and patients. It is much easier to plan for payroll, supplies, or equipment investments.
2. Collections performance
   High balances in the over 60 or over 90 day buckets signal problems in billing, follow up, or financial policies. Left alone, those balances quietly become write offs.
3. Insurance follow up priorities
   The aging of AR tells you exactly where to focus limited follow up time. A few claims in the 90 day bucket can be worth more than pages of small balances in the current bucket.
4. Patient experience
   When AR aging is not managed, patients get surprise statements months after treatment. That makes financial conversations harder and can damage trust.
5. Practice value and lender confidence
   Lenders, buyers, and advisors often look at the accounts receivable aging report to evaluate practice health. Old, bloated AR can lower perceived value.
   

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What Does A Dental AR Aging Schedule Typically Look Like?

1. Insurance AR aging report

This focuses on unpaid insurance claims by payer and by age. It helps with:

• Checking for claims close to timely filing deadlines
• Spotting payers that are consistently slow
• Measuring the impact of clean claim submission
  
  

2. Patient AR aging report

This focuses on patient balances after insurance. It helps with:

• Identifying overdue patient balances
• Planning payment reminders and calls
• Deciding when to consider collections or write offs

Some practices also use:

• A combined accounts receivable report that shows both insurance and patient balances.
• A provider or location level AR aging analysis for multi doctor or multi location groups.

If you are part of a growing group or considering joining one, you may also want to understand how DSOs work – you can read more here: What Is a DSO? Understanding How Dental DSOs Work.

If you use accounting tools such as QuickBooks, you may also see an AR aging report in QuickBooks.

That version shows what your accounting books think AR looks like, which sometimes differs from your practice management system. It is important to reconcile these regularly so that:

• Production and collections in your practice software
• Match the AR and revenue shown in your accounting software

How Should You Read And Analyze Your AR Aging Report?

If you are wondering “What is AR aging telling me, in plain English?”, here is a simple way to read it.

Focus on these four questions:

1. What is our total AR compared to average monthly production?

As a rough guideline for many dental offices:

• Total AR under 1 to 1.5 times your average monthly collections is often considered reasonable.
• If total AR is more than 2 times monthly collections, it is worth a deeper look.

2. How much is over 30 days and over 90 days?

Many healthy practices aim for:

• Over 90 days AR at less than 10 percent of total AR.
• The lower, the better. Some top performing practices work toward 5 percent or less.
  

3. Is the problem insurance or patients?

Break down your AR aging analysis by payer type:

• Insurance aging: If high, there may be issues with claim submission, attachments, coding, follow-up, or benefit verification.
• Patient aging: If high, financial arrangements, estimates, statement processes, or collection at time of service likely need attention.

4. Are there obvious clean up items?
   Most aging reports have some “noise,” for example:
   

• Small credit balances that should be refunded or adjusted
  
• Older balances that may need reclassification or review
  
• Charges or payments that appear duplicated or misapplied

A consistent accounts receivable aging analysis includes both:

• Reading the numbers and
• Making decisions about what policies or workflows need to change.

How Often Should A Dental Office Review AR Aging?

The more digital and insurance heavy your practice is, the more often aging AR deserves a look.

A practical rhythm many high performing offices follow:

• Daily snapshot
  
  • Glance at total AR and new over 30 day balances.
  • Confirm that yesterday’s claims were created and sent.
• Weekly working session
  
  • Review the insurance aging report by checking each claim’s status.
  • Prioritize high-dollar claims over 90 days first, then review high-dollar claims over 30 days.
  • Make notes inside your practice management system for every claim you touch.
• Monthly review with the doctor or manager
  
  • Review trends in the accounts receivable aging report.
  • Compare current month to last month for total AR, over 30 days, and over 90 days.
  • Decide on any policy or procedure changes needed.

One important distinction your team should keep in mind:

• Reviewing the aging report means reading totals.
• Working the aging report means calling, correcting, appealing, and resolving balances.

To improve collections, the report has to be worked, not just printed.

What Are Common AR Aging Problems In Dental Practices?

If your AR aging report feels more like “a list of headaches” than “a useful tool,” you are not alone.

We see some common patterns when dental teams come to Wisdom for help.

1. Large over 90 day insurance AR
   Possible causes:
   
   • Claims not being followed up after the first denial
   • Missing documentation or attachments
   • No owner for AR aging follow up inside the team
   • Timely filing limits passed without anyone noticing
2. High patient balances over 60 or 90 days
   Possible causes:
   
   • Weak pre treatment financial conversations
   • Overpromising on “what insurance will pay” instead of giving estimates
   • Sending infrequent or confusing statements
   • Lack of clear payment plan options
3. AR that does not match accounting or feels “fake”
   Possible causes:
   
   • Old balances that should have been written off
   • Incorrect transfers between insurance and patient
   • Mis posted payments and adjustments
4. Aging report pages that never get worked
   Possible causes:
   
   • Old balances that may need reclassification or review
   • Incorrect transfers between insurance and patient
   • Incorrect payments or adjustments posted

The purpose of aging the accounts receivables is to prompt action, not just to generate another report.

When it is not connected to daily workflows or ownership, it quickly becomes stale.

How Can You Improve AR Aging In Your Practice?

You do not have to fix aging AR overnight. A series of small, consistent steps can make a noticeable difference within a few months.

Here is a practical approach many dental teams follow.

1. Set Clear AR Aging Targets

Agree on simple, realistic goals, such as:

• Total AR at 1 to 1.5 times monthly collections.
• Over 90 days AR at 10 percent or less of total AR.
• Insurance claims older than 30 days worked 14-21 days.

Putting actual numbers to “we need to clean this up” helps everyone stay aligned.

2. Assign Ownership For Insurance And Patient AR

Decide who is responsible for:

• Insurance AR aging report
  
  • Following up on unpaid claims
  • Fixing errors and resubmitting
  • Documenting all actions
• Patient AR aging report
  
  • Sending statements and reminders
  • Calling on all over due balances
  • Coordinating payment plans

Even in a small office, you can share responsibility, but each bucket should have a clear primary owner.

3. Work The Oldest, Highest Impact Balances First

When you open your AR aging report, do not just start at page one. Instead:

• Filter by oldest date.
• Sort within each bucket by highest balance.
• Focus on:
  
  • Claims close to timely filing limits.
  • Larger balances that would make a real difference when collected.

This targeted AR aging analysis keeps your limited follow up time focused on the right accounts.

4. Tighten Up Front End Financial Processes

The best way to improve aging of AR is to prevent avoidable balances from landing there at all. That usually means stronger:

• Dental insurance verification before treatment
• Accurate treatment estimates that explain what insurance is expected to cover
• Clear financial agreements signed by patients
• Same day collection of patient portions whenever possible

Partnering with a dental insurance verification company can make these front‑end checks more consistent, which shows up later as a cleaner AR aging report and fewer surprises for patients.

When these pieces work together, your accounts receivable aging report example will show more activity in the current bucket and much less in the older ones.

5. Use Your System’s Tools, Including AR Aging Reports In QuickBooks When Needed

Many practice management systems and accounting tools offer:

• Drill down from the accounts receivable aging report to individual claims and ledgers
• Notes fields to track follow up
• Export options to share with your CPA or consultant

If you are using QuickBooks for your accounting, running an AR aging report in QuickBooks can help confirm that:

• The AR in your books
• Matches what your dental software shows

Large differences are a sign that something needs to be reconciled.

6. Consider Partnering With Dental AR Experts

For many practices, the barrier is time and specialized knowledge, not willingness. You know the AR aging report is important. You simply cannot create more hours in the day.

That is where a specialized dental revenue cycle partner like Wisdom can help:

• Working your insurance aging schedule consistently
• Following up on denied and delayed claims
• Posting payments and adjustments accurately
• Supporting patient billing in a way that feels clear and respectful

The outcome is not only better numbers. It is often less stress for the front office and a much clearer financial picture for the practice owner.

How Can Wisdom Help You Fix Your AR Aging Report?

If your AR aging report makes you feel behind before you even start your day, Wisdom can step in beside your team.

At Wisdom, we work only with dental practices. Our dental billing experts are:

• Experienced with dental insurance, attachment requirements, and timely filing rules
• Focused on reducing 60 and 90 plus day AR, not just moving balances around
• Trained to use your practice management system so notes and follow up are clear and visible to your team

For many clients, that looks like:

• Up to a 50 percent reduction in 90 plus day accounts receivable in the first 6 months
• Over 98 percent of clients increasing their insurance billing revenues while working with Wisdom
• Noticeably higher patient satisfaction and fewer stressful “Where is the money?” conversations

If you would like help reviewing your own accounts receivable aging report or want a second set of eyes on your AR aging analysis, the Wisdom team is ready to walk through it with you and build a practical plan tailored to your practice.

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