Is there a way to calculate average days it takes for our clients to pay their invoices? example; we want our average days our invoices are paid to be less than 30 days on aaverage.
We are using the Cash Flow Story method of analyzing our company health.
Any ideas?
Best answer by JG3
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Hello Mary,
We do not currently have a report like that, but I really like this suggestion! I am going to pass this on to the product team, but if you like you can also put in a suggestion here. The more places we let them know about this idea the better. They will still be notified about this post.
As you know, different SB reports provide invoice date, by client, and others show payment date, by invoice, by client. No reports appear to have both invoice date and paid date together. Too bad, as that would allow you to easily download this (non-existent) report into a spreadsheet and calculate the number of days to payment.
Without such a report, the only recourse is downloading the separate reports into a spreadsheet or database and then manipulate the data to arrive at your information, but that work would be time consuming and tedious...and once you are in the weeds it can get sticky.
You have to consider how to handle that subset of clients that only partially pays or is on a payment plan. Do they count as paid or still not paid? Complicating things as well would be how to accurately assess a multi-invoice payment and then properly backtracking the days to each of the invoices.
Uggh, what a mess.
A potential workaround, to get a rough idea of client days to payment is to use the invoices tab in SB Billing, as below. Enter whatever month or billing period your firm uses and slide on the “paid” filter and it provides date paid and date invoice was issued (but not necessarily emailed or mailed!). Annoyingly, you can’t download that information or copy/paste into a spreadsheet, but it nonetheless gives you information for an eyeball test on payments for those that have paid. For those that haven’t paid, well, there’s the Aging report...and more data manipulation.
Good luck.
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