HVAC
HVAC Accounts Receivable Calculator
What is actually outstanding, how much of it is late, and what the delay is costing, with the aging split out the way a collections list has to be worked.
Result
Days sales outstanding has several formulas and they disagree with one another, so compare this figure against your own over time rather than against somebody else's. The carrying cost is the financing cost of the late money alone; it does not attempt to price the invoices that are never collected at all, which is usually the larger number.
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About this calculator
What is a good DSO for an HVAC company?
There is no number worth copying, because it depends almost entirely on the mix of work. A residential service company taking payment at the door runs a very low DSO; one doing commercial or new-construction work on Net 30 or Net 45 terms runs a much higher one, and neither is a problem in itself. The useful comparison is against your own figure last quarter.
What actually reduces days sales outstanding?
Invoicing sooner, in most cases. The gap between finishing the work and sending the invoice is time added to every payment, and it is usually the easiest part of the cycle to shorten. After that: making it payable online, stating the terms on the invoice, and following up on a schedule rather than when somebody notices.
When should an unpaid invoice be written off?
That is a judgement about this customer and this amount, not a formula. What matters is that it becomes a decision rather than a balance that ages quietly forever. An aging report that nobody acts on is a list, not a process.
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Open calculatorAn aging report that gets worked
The BDEVY invoicing demo groups every outstanding balance by how late it is, shows the follow-up sequence each invoice is standing in, and flags the ones automation has given up on.