How To Calculate Days Sales Outstanding in BQE CORE | Arithmix

Calculating Days Sales Outstanding (DSO) is an important metric for any business owner or financial analyst. It helps to determine how long it takes for a company to collect payment from its customers after a sale has been made. In this article, we will explore what DSO is, when it is valuable to calculate it, and how to calculate it in BQE CORE.

What Is Days Sales Outstanding?

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after a sale has been made. It is calculated by dividing the accounts receivable balance by the average daily sales. The result is the number of days it takes for a company to collect payment from its customers.

DSO is an important metric because it helps businesses to understand their cash flow and liquidity. A high DSO indicates that a company is taking longer to collect payment from its customers, which can lead to cash flow problems. A low DSO indicates that a company is collecting payment from its customers quickly, which can improve cash flow and liquidity.

When Is It Valuable To Calculate Days Sales Outstanding?

It is valuable to calculate DSO for any business that sells products or services on credit. DSO can help businesses to identify trends in their cash flow and identify potential problems before they become serious. It can also help businesses to set goals for improving their cash flow and liquidity.

DSO is particularly valuable for businesses that have a high volume of sales or a large accounts receivable balance. These businesses may have a harder time collecting payment from their customers, which can lead to cash flow problems. By calculating DSO, these businesses can identify areas where they can improve their collections process and reduce their DSO.

How to Calculate Days Sales Outstanding in BQE CORE

BQE CORE is a cloud-based accounting software that can help businesses to calculate DSO. To calculate DSO in BQE CORE, follow these steps:

1. Go to the Reports tab and select the Accounts Receivable Aging report.
2. Select the date range for the report.
3. Export the report to Excel.
4. Calculate the average daily sales for the period by dividing the total sales by the number of days in the period.
5. Calculate the DSO by dividing the accounts receivable balance by the average daily sales.

By following these steps, businesses can easily calculate their DSO in BQE CORE and use the information to improve their cash flow and liquidity.

In conclusion, calculating Days Sales Outstanding is an important metric for any business that sells products or services on credit. It helps businesses to understand their cash flow and liquidity and identify potential problems before they become serious. By using BQE CORE, businesses can easily calculate their DSO and use the information to improve their collections process and reduce their DSO.

How Do You Calculate Days Sales Outstanding in BQE CORE

BQE CORE itself isn’t naturally geared towards letting you calculate complex metrics like Days Sales Outstanding. As an alternative, teams typically use products like Arithmix to import data from BQE CORE and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like BQE CORE, combine it with data from other systems, and create calculations like Days Sales Outstanding.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Days Sales Outstanding in Arithmix

Calculating metrics like Days Sales Outstanding is simple in Arithmix. Once you've created your free account, you’ll be able to import your BQE CORE data, and use it to create natural language formulas for metrics like Days Sales Outstanding.

Arithmix is designed to give you the power to build any calculations you want on top of your BQE CORE data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.