|Articles|September 1, 2004
Days in A/R
How do I measure days in accounts receivable?
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Question: How do I measure days in accounts receivable?
Answer: There are several different ways to calculate days in accounts receivable, but the industry standard is to divide your total accounts receivable by your average daily gross charge. Your average daily gross charge is your total gross charges for the past year divided by 365 days.
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