How is aging of accounts best defined?

Aging of accounts is best defined as a method that categorizes accounts based on the duration they have been overdue or delinquent. This process allows a practice to track outstanding payments and prioritize collections based on the age of the debt. By organizing accounts in terms of how long they have remained unpaid, medical administrative professionals can effectively manage collections, assess the financial health of the practice, and make informed decisions on follow-up actions. Aging reports typically break down accounts into time frames, such as 30, 60, or 90 days overdue, facilitating targeted follow-ups and improving cash flow management. This approach is pivotal in maintaining a sustainable revenue cycle, as it helps identify which accounts may require more immediate attention and collection efforts.