How To Calculate DSO in BQE CORE | Arithmix

Calculating DSO, or Days Sales Outstanding, is an important metric for any business that wants to keep track of its cash flow. It measures the average number of days it takes for a company to collect payment from its customers after a sale has been made. In this article, we will explain what DSO is, why it is valuable to calculate it, and how to calculate it in BQE CORE.

What Is DSO?

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 for any business because it helps to measure the efficiency of its accounts receivable process. A high DSO can indicate that a company is having difficulty collecting payment from its customers, which can lead to cash flow problems. A low DSO, on the other hand, can indicate that a company is collecting payment from its customers quickly, which can improve cash flow and reduce the risk of bad debt.

When Is It Valuable To Calculate DSO?

Calculating DSO is valuable for any business that wants to keep track of its cash flow. It can be particularly valuable for businesses that have a high volume of sales or a large accounts receivable balance. By calculating DSO, businesses can identify areas where they may need to improve their accounts receivable process, such as by implementing more efficient invoicing or payment collection methods.

DSO can also be useful for businesses that are looking to improve their cash flow. By reducing their DSO, businesses can improve their cash flow and reduce the risk of bad debt. This can be particularly important for businesses that rely on a steady cash flow to pay their bills and invest in their growth.

Overall, calculating DSO is a valuable metric for any business that wants to keep track of its cash flow and improve its accounts receivable process. By understanding what DSO is, why it is valuable to calculate it, and how to calculate it in BQE CORE, businesses can take steps to improve their cash flow and reduce the risk of bad debt.

How Do You Calculate DSO in BQE CORE

BQE CORE itself isn’t naturally geared towards letting you calculate complex metrics like DSO. 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 DSO.

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 DSO in Arithmix

Calculating metrics like DSO 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 DSO.

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.