Accounts Receivable & DSO Calculator
Days to collect, overdue receivables and their cost.
What you pay for a loan or what you stop earning
6 days above your terms
$ 20.000.000 of $ 48.000.000
- Highest-risk receivables (more than 30 days overdue)
- 16,7 %
- Capital tied up by collecting late
- $ 8.000.000
- Monthly cost of financing all receivables
- $ 960.000
- Monthly cost of the excess over your terms
- $ 160.000
- Credit sales per day
- $ 1.333.333
Short answer:days sales outstanding (DSO) measure how long your customers take to pay you:receivables ÷ credit sales for the period × days in the period. If you give 30 days of credit and your DSO is 45, you have 15 days of sales stuck in receivables, which you are financing with your own cash.
The calculator also ages your receivables (current, 1 to 30, 31 to 60 and more than 60 days overdue) and estimates how much that idle money costs you at the financing rate you pay or forgo.
When to use this tool
- When you sell on credit and feel cash isn't enough.
- When reviewing which customers to give more or less credit.
- Before applying for a working capital loan.
- To measure whether your collection reminders work.
How to calculate days sales outstanding
- 1Enter your credit sales for the period and how many days it has (90 for a quarter).
- 2Enter the payment terms you give your customers.
- 3Split your current receivables by age: current and overdue by bracket.
- 4Enter your monthly financing rate and check the DSO, the overdue receivables and their cost.
Invoice the same day and know who owes you
Every day the invoice is late is one more day to collect. In Katuq the DIAN electronic invoice is generated from the order itself, the customer can pay with a Wompi, ePayco or Bold link, and you see which orders are paid, pending or partly paid.