How To Calculate Days Sales Outstanding in BQE CORE Suite | Arithmix
Learn how to calculate Days Sales Outstanding (DSO) in BQE CORE Suite with our step-by-step guide. Improve your cash flow management and gain valuable insights into your business performance. Start optimizing your accounting processes today.
Calculating Days Sales Outstanding (DSO) is an important metric for any business. It helps you understand how long it takes for your customers to pay their invoices, which in turn affects your cash flow. In this article, we'll explain what DSO is, why it's valuable to calculate it, and how you can do so in BQE CORE Suite.
What Is Days Sales Outstanding?
Days Sales Outstanding is a measure of how long it takes for a business to collect payment from its customers. 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 business to collect payment from its customers.
For example, if a business has an accounts receivable balance of $100,000 and its average daily sales are $10,000, its DSO would be 10 days. This means that on average, it takes the business 10 days to collect payment from its customers.
When Is It Valuable To Calculate Days Sales Outstanding?
Calculating DSO is valuable for any business that extends credit to its customers. It helps you understand how long it takes for your customers to pay their invoices, which in turn affects your cash flow. If your DSO is high, it means that your customers are taking longer to pay their invoices, which can put a strain on your cash flow.
Calculating DSO can also help you identify trends in your business. For example, if your DSO is increasing over time, it may be an indication that your customers are having trouble paying their invoices or that your credit policies need to be adjusted.
Finally, calculating DSO can help you benchmark your business against others in your industry. If your DSO is higher than the industry average, it may be an indication that you need to improve your credit policies or collections processes.
In conclusion, calculating Days Sales Outstanding is an important metric for any business that extends credit to its customers. It helps you understand how long it takes for your customers to pay their invoices, which in turn affects your cash flow. By benchmarking your DSO against others in your industry, you can identify areas for improvement and make data-driven decisions to improve your business.
How Do You Calculate Days Sales Outstanding in BQE CORE Suite
BQE CORE Suite 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 Suite 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 Suite, 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 Suite 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 Suite 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.Use Arithmix free