DSO calculator
Enter your accounts receivable balance and your credit sales for a period. See your days sales outstanding, and the cash each day of DSO ties up.
How long your customers take to pay, on average.
Days sales outstanding divides what customers owe you by what you sell them on credit, and turns it into days: accounts receivable ÷ credit sales × days in the period.
Compare it with your terms. If most customers are on Net 14 and DSO is 23, the average customer pays nine days late, and nine days of credit sales are sitting with customers instead of in your bank.
What moves it
- A few large late payers, which an AR aging by customer shows straight away.
- Payments received but not applied to invoices, which make customers look later than they are.
- Credit checked after the delivery instead of when the order is placed.
In APFoodz, credit is checked before an order is placed, and statements and reminders keep receivables moving.
Questions about this tool.
What is a good DSO?
One close to your payment terms. If most customers are on Net 30 and DSO is 45, customers are paying on average fifteen days late.
See it with your own data.
A working session with your customers, your items and your route days. Thirty minutes.