Business Insights—Accounts Receivable Days

The Accounts Receivable Days window shows the number of days it would take to collect your total accounts receivable at the month’s average revenue per day. The top half of the window shows amounts in a table format, the bottom half displays a line graph to represent the comparison. This rate is calculated as follows:

Accounts Receivable collection rate = (Accounts Receivable divided by Sales)  x days in the specified month.

For information about how amounts are calculated and defined, see Business Insights—Introduction.

Amounts shown in this window are color coded:

■	Green indicates a decrease in the collection rate from the prior period. This is a positive trend and fewer days is better, but if it coincides with decreased sales, it may mean your credit terms are too tight.

■	Red indicates an increase in the collection rate from the prior period. Improving your debt collection methods may lower this rate. For example, you might consider more flexible payment options or early payment incentives for your customers.

■	Blue means there has been no change in the collection rate from the prior period.

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Related Topics

■	Tracking financial information

■	Reviewing financial information