How Long Does It Take People To Pay You?

14 Sep How Long Does It Take People To Pay You?

If you can’t answer that question you may not have the tools that you need to estimate your cash flow and prevent a shortage.  One of the easiest ways to gain this knowledge is to pull an average days to pay report in QuickBooks 2011.  This report can be found under Customer Reports: Average Days to Pay.

Average Days to Pay Report

If your terms are set at Net 15 for your customer accounts your company depends on that inflow of cash within the 15 days to help cover the outflow you have promised to others.  If your customers average day to pay is really 30 or 45 days you can end up with a significant cash crunch.  To help prevent this problem you can pull the average days to pay report, review your clients average days to pay, and then possibly remove credit accounts for those customers who consistently take longer than their terms to pay.

Let us know how it works out.  Pull your average days to pay report and get moving!