Days to Collect Accounts Receivable is a key indicator of the efficiency and liquidity of your business. It measures how long it takes for you to collect payments from your customers after making a sale. To calculate the Days To Collect Accounts Receivable, divide the amount of Accounts Receivable by the average daily net sales then multiply that figure by the number of days in a period (usually 30 days) and you’ve got your answer! Knowing this information is a crucial part of understanding your company’s financial health and ensuring cashflow remains steady.