What is Debtor days?
Finance & accounting. A plain-English definition for Australian business owners.
Debtor days (also called days sales outstanding, or DSO) measures the average number of days a business takes to collect payment after invoicing, calculated from accounts receivable relative to sales over a period.
Rising debtor days means cash is arriving more slowly — often the first measurable sign of collections drift or customer stress — and every extra day is cash the business must fund from somewhere else. Debtor days is a standard metric in SME management reporting, tracked monthly alongside creditor days and the cash flow forecast.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.