Payment Timing
How fast clients pay us, and how long we take to pay subs. The cash cycle.
Clients pay us in (avg)
8 days
We pay subs in (avg)
0 days
Float we hold (subs - clients)
-8 days
What this means
You pay subs faster than clients pay you, which drains cash. Slowing sub payments or speeding client collection would help.
How long we take to pay each sub
| Subcontractor | Owed now | Monthly cost | Avg days to pay |
|---|
DSO = total A/R divided by monthly revenue, times 30. DPO = amount owed divided by that sub's monthly cost, times 30. These are estimates from balances. For exact invoice-to-payment days per client and per sub, upload the QuickBooks A/R Aging Detail and A/P Aging Detail reports and I will compute the precise averages. Per-client payment speed is on the A/R Aging page (clients sitting in the 31+ buckets are the slow payers).