How do I calculate days in accounts receivable?
Question: How do I calculate days in accounts receivable?
Answer: There are several ways to calculate days in A/R, 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.
Optimize your practice with the Physicians Practice newsletter, offering management pearls, leadership tips, and business strategies tailored for practice administrators and physicians of any specialty.