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By dividing sales by accounts receivable, you get a multiple just like the one in inventory turnover.
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As for receivables: If you are growing because you are playing banker to your customers, your banker won't be your banker much longer.
The usual places are in inventory or receivables, which you don't have.
If you can afford to, hire someone to follow up on your accounts receivable; this gives you a more professional gloss and makes payment seem more urgent.
It worked fine when plants, equipment, inventories, accounts receivable -- stuff you could see and touch -- were what made a company tick.
This is "accounts receivable," or "A/R," because you can count on receiving the money.
This includes cash (any money in bank accounts), accounts receivable (money owed to you), office supplies, and anything expected to be received or used up within a year.
Most small businesses have a timing mismatch between receivables and payables and you can't pay for things today with cash you expect to receive tomorrow.
On the edge of your consciousness you can hear Brenda from accounts receivable saying something boring and so you focus a little harder on the mug.
For example, if your sales were $500 for the year, and you had accounts receivable of $50, your average accounts receivable age would be 365/ 500/50), or 36.5 days.
They're kind of the opposite of accounts receivable: They're the bills you got in the mail but haven't paid yet.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com