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Accounts Receivable Calculators

AR Calculators

These helpful financial calculators will assist you in gauging the effectiveness of your credit and collection policies. Bookmark this link for future use.


Day Sales Outstanding Calculator

Day Sales Outstanding (DSO) is a measurement, in number of days, of the time it is taking to collect your accounts receivable. Day Sales Outstanding (DSO) can uncover the effectiveness of your credit and collection policy’s effectiveness over time. This version of a DSO calculator multiplies your current end of month receivables balance by 90 and divides that number by your total sales for the last 3 months. This tool is typically used monthly and is a good way to measure whether or not your current strategy is improving your cash-flow and bottom line. We have used 30 days as the number of days your customers are expected to pay therefore, your DSO should be as close to thirty days as possible.

Current EOM A/R balance:
In dollars. Numbers only, please, no commas or dollar signs
Total sales (past 3 months):
In dollars. Numbers only, please, no commas or dollar signs
Day Sales Outstanding:

 

Accounts Receivable Turnover

This calculator helps you to determine how quickly your invoices turning into actual money. Your accounts receivable turnover is calculated by dividing your total credit sales by the average of your accounts receivable. If your result is somewhere between 40 to 45, you’re in pretty good shape. But if the result is over 50, you have a lot of accounts (or a few very big accounts) that aren’t paying you on time, leading to a cash crunch.

Net credit sales:
In dollars. Numbers only, please, no commas or dollar signs 
 
Average receivables:
In dollars. Numbers only, please, no commas or dollar signs 
 
Your AR Turnover:


Accounts receivable aging

This calculator will help you determine the percentage of seriously delinquent receivables. These numbers are calculated by taking the dollar value of all of your outstanding receivables from their respective 30-day periods, and dividing by the total value of all of the accounts in question. This calculation can be helpful for determining how quickly your accounts are typically monetized.

Under 30 Days:
In dollars. Numbers only, please, no commas or dollar signs 
 
30-60 Days:
In dollars. Numbers only, please, no commas or dollar signs 
 
60-90 Days:
In dollars. Numbers only, please, no commas or dollar signs 
 
90-120 Days:
In dollars. Numbers only, please, no commas or dollar signs 
 
Over 120 Days:
In dollars. Numbers only, please, no commas or dollar signs 
 
Total Accounts Receivable
  Under 30 Days:
  30-60 Days:
  60-90 Days:
  90-120 Days:
  Over 120 Days:


Days of inventory on hand

This calculator will determine how soon you would completely exhaust your inventory if you stopped ordering new merchandise today. This calculation determines your inventory turn rate by dividing the actual cost of your merchandise by 365, and then dividing the inventory on hand by the result.

Current inventory:
In dollars. Numbers only, please, no commas or dollar signs 
 
Cost of goods:
In dollars. Numbers only, please, no commas or dollar signs 
 
Days of inventory on hand:


           Summit was there every step of the way with patience, good humor, and advice. We received payment in record time. I will definitely use Summit again for any of our debt collection needs.
Alison D., Credit Manager
International Distributor
           Summit AR handled the accounts extremely professionally and kept that quality working relationship with our client intact. Best of all we received a 75% recovery rate. I would recommend them to any company.
Micah B., Director
National Franchisor
           You've been able to get our problem accounts paid in full so that I can focus on more profitable activities
Owner
IT Systems Co.
           I've been very impressed with how quickly you've recovered on accounts we thought were lost for good... many thanks!
Partner
Small Law Firm
           You are definitely not the typical collection agency. I've experienced nothing but professionalism and unexpectedly good results versus my former agency... You actually give collection agencies a good name!
Manager
Medical Supply Co.
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