how to calculate Daily Sales Outstanding
1: Replace the figures in the yellow cells with your own figures.   (To get a true and accurate figure, insert
the Debtor Ledger Balance as it stands on the first working day of the month.)

2: Click anywhere else on the screen to see the result and the increases in cashflow and the savings
that can be made by reducing it.
analyse the results
A high DSO number shows that a company is selling its product to customers on credit and taking
longer to collect money than it should.  This is frequently the result of too much credit being given, or, to
put it another way
A low DSO number means that it takes a company fewer days to collect its accounts receivable.  This is
good cash-flow and lowers the risk of Bad Debts.
080320 - daily sales calculator - 4 - web.xls
Sales - Month 1 Your current DSO is Your new DSO will be Cashflow will increase by Borrowing costs will reduce by  
Sales - Month 2 With a reduction of  
Sales - Month 3 10%  
Total Sales          
Days in Period With a reduction of  
Average Daily Sale 20%  
Total Debtors - (Day 1 of Month 4)      
Your Bank's Overdraft rate    
 
     

Daily Sales Outstanding is a useful method to measure the average age of accounts
receivable.  Return to this page monthly and use it as a KPI.  Benchmarking your
performance against others in your industry is useful, but it is the trend of your own DSO
that is most important.
DAILY SALES
OUTSTANDING