Calculate how long it takes you get paid

How long does it take for you to get paid?

Waiting a long time to get paid and chasing customers for payments can impact your cash flow which can leave you without much available cash to reinvest in the business or pay suppliers. To first understand the whether you have a problem with cash flow you need to understand how long you are typically waiting to get paid.

Cash flow is usually measured in Days Sales Outstanding (DSO), where you calculate the full period of time it takes to get paid.

Why is it important?

Cash flow has a huge impact on businesses of all sizes as it impacts the money you have available to reinvest in the business and to pay suppliers. When you’re waiting to get paid for work you’ve already done or goods you’ve already sent out, it could cause bad debt and negative cash flow.

Calculate your cash flow

Metric: number of days to actually get cash in the bank after payout

A report from Forrester found that 52% of Aussie businesses wait up to 30 days to receive payments after the arranged due date.

Calculate your DSO

DSO = Accounts Receivable at the end of the period/Gross revenue over the period X Number of days in the period

Once you have your DSO calculated, use our calculator below to calculate how much revenue you have held up and how you are waiting to get paid.