---
title: "What Is Days sales outstanding? Dental Practice Glossary"
description: "Days sales outstanding is the average number of days it takes to collect payment after services are billed, found by dividing receivables by sales and..."
url: https://joncopeland.multisites.ai/glossary/days-sales-outstanding
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Days sales outstanding

Days sales outstanding is the average number of days it takes to collect payment after services are billed, found by dividing receivables by sales and multiplying by days.

The SBA's glossary calls this measure days receivable. It describes it as the average time a company's customers take to pay for purchases, equal to accounts receivable divided by annual sales on credit times 365. In a dental office, a lower number means money is collected faster. Because many dental services are paid at the visit, a practice may need to define which charges count as credit sales. Rising days may point to slow insurance payments or billing gaps in the [revenue cycle](https://joncopeland.multisites.ai/glossary/revenue-cycle). The measure builds on [accounts receivable](https://joncopeland.multisites.ai/glossary/accounts-receivable) and affects [cash flow](https://joncopeland.multisites.ai/glossary/cash-flow). The formula should be the same each month so results can be compared.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Accounts receivable](https://joncopeland.multisites.ai/glossary/accounts-receivable)
-   [Revenue cycle](https://joncopeland.multisites.ai/glossary/revenue-cycle)
-   [Cash flow](https://joncopeland.multisites.ai/glossary/cash-flow)
-   [Collection ratio](https://joncopeland.multisites.ai/glossary/collection-ratio)

## Sources

1.  [SBA, Glossary of Business Financial Terms](https://www.sba.gov/document/support--glossary-business-financial-terms)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)