---
title: How to calculate debtor days in Xero, Sage, Quickbooks and FreeAgent
description: Debtor days, sometimes known as days sales outstanding (DSO), can have a significant impact on a business’ cashflow. As an accountant, you’re always looking out for your clients’ best interests. Establishing their debtor days average is a great first step in helping them get paid faster; especially if you’re able to offer them a credit […]
image: https://go.satago.com/hubfs/Imported_Blog_Media/calculate-debtor-days-in-xero.gif
---

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 Mar 11, 2021 1:48:37 AM

# How to calculate debtor days in Xero, Sage, Quickbooks and FreeAgent

[James Weaver](https://go.satago.com/satago.com/author/james-weaver)

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Debtor days, sometimes known as days sales outstanding (DSO), can have a significant impact on a business’ cashflow.

As an accountant, you’re always looking out for your clients’ best interests. Establishing their debtor days average is a great first step in helping them get paid faster; especially if you’re able to offer them a credit control service.

By establishing their debtor days average, you can pinpoint which clients will benefit from your expertise and demonstrate how you can impact their bottom line.

## How to establish debtor days in Xero

To find out your clients’ debtor days average in [Xero](https://www.xero.com/uk/signup/?xtid=x30satago), you need to run an Executive Summary. This is a report which will give you an overview of their profitability, balance sheet and income, as well as their debtor days.

To run the report:

1) Go to the **Accounting Menu** and select **Reports.**

2) Under **Financial**, click **More Reports.**

3) Click **Executive Summary.**

4) Select the **Date** that you want to measure.

5) From the Show field, select **Summary and Ratios**.

6) Click **Update**.

7) Scroll down to the ratios section of the report. Under **Position** you’ll see average debtor days.

![Xero executive summary ](https://go.satago.com/hubfs/Imported_Blog_Media/Satago-executive-summary-demo.png)

## How to establish debtor days in Sage 50

To find your clients’ debtor days in [Sage 50](https://www.sage.com/en-gb/products/sage-50cloud/), follow these steps. Note, this analysis is not available in Sage 50 Accounts Essentials or Sage Instant Accounts.

1) Navigate to **Customers**.

2) Click **Chase Debt**.

3) Click **Debt Analysis**.

4) In this window you will see **Company’s Days Sales Outstanding**.

![Sage 50 Debt Analysis days sales outstanding report](https://go.satago.com/hubfs/Imported_Blog_Media/Satago-companys-days-sales-outstanding.png)

## How to establish debtor days in QuickBooks

[Quickbooks](https://quickbooks.intuit.com/uk/) doesn’t currently offer a debtor days report, so you will need to calculate your clients’ debtor days manually. The calculation for debtor days is:

(accounts receivables ÷ credit sales) x days in the period = debtor days.

To get the components for this formula, follow these steps:

1) Navigate to **Reports.**

2) In the Who Owes You section click **Accounts Receivable Ageing Summary**.

3) Set the period you wish to measure.

4) Click **Run Report,** this will show your accounts receivables for this period.

5) Navigate back to **Reports**.

6) Click **Invoices and Received Payments**.

7) Set the period you wish to measure.

8) Click **Run Report,** this will show your credit sales for this period by customer. You can export this report to Excel to quickly calculate the total credit sales for the period.

9) Divide the accounts receivable by the credit sales and multiply by the number of days in the period. This will give you the debtor days.

## How to establish debtor days in FreeAgent

[FreeAgent](https://www.freeagent.com/) also doesn’t currently offer a debtor days report. To work out your client’s debtor days, follow these steps:

1) Navigate to the **Balance Sheet**

2) You’ll find the accounts receivables under **Trade Debtors** in the balance sheet.

3) Navigate to the **Profit and Loss Account,** where you’ll find the business’ credit sales.

4) Manually calculate the debtor days: (accounts receivables ÷ credit sales) x days in the period = debtor days.

## Accounting and bookkeeping firms: credit control as a service

Satago’s practice platform is a great way for your firm to offer credit control services to all or part of your client base.

Satago connects to your and your clients accounting software and integrates with your email provider, so you can send automated payment reminders to customers from your own email address.

You can track customer responses to payment reminders within the platform and easily measure the impact of the automated emails on your client’s sales ledger, making this an easy service to manage.

By offering to manage credit control for your clients, you can help them reduce their debtor days by up to 72% in as little as one month and tangibly increase their cash balance, as well as driving additional revenue for your practice.

To find out more, [sign up to Satago](https://app.satago.com/register/).

[Cash management](https://go.satago.com/satago.com/tag/cash-management), [On Cashflow](https://go.satago.com/satago.com/tag/on-cashflow)

## Related posts

[![](https://go.satago.com/hs-fs/hubfs/Imported_Blog_Media/debtor-days-calculator.jpeg?height=200&name=debtor-days-calculator.jpeg)](https://go.satago.com/satago.com/post/debtor-days-calculator)

[Cash management](https://go.satago.com/satago.com/tag/cash-management), [On Cashflow](https://go.satago.com/satago.com/tag/on-cashflow)

## [Debtor Days Calculator: How to Reduce the Time it Takes to Get Paid](https://go.satago.com/satago.com/post/debtor-days-calculator)

[James Weaver](https://go.satago.com/satago.com/author/james-weaver) 

 Mar 12, 2021 1:50:34 AM

If you’re doing research on debtor days, you might be:

[Read more](https://go.satago.com/satago.com/post/debtor-days-calculator)

[![](https://go.satago.com/hs-fs/hubfs/Imported_Blog_Media/what-are-debtor-days.jpeg?height=200&name=what-are-debtor-days.jpeg)](https://go.satago.com/satago.com/post/what-are-debtor-days)

[Cash management](https://go.satago.com/satago.com/tag/cash-management), [On Cashflow](https://go.satago.com/satago.com/tag/on-cashflow)

## [What are Debtor days and how do they impact your business?](https://go.satago.com/satago.com/post/what-are-debtor-days)

[James Weaver](https://go.satago.com/satago.com/author/james-weaver) 

 Mar 16, 2021 1:52:13 AM

Debtor days, sometimes called days sales outstanding (DSO) are a measure of the time it takes your...

[Read more](https://go.satago.com/satago.com/post/what-are-debtor-days)

[Cash management](https://go.satago.com/satago.com/tag/cash-management), [Accountant](https://go.satago.com/satago.com/tag/accountant), [On Cashflow](https://go.satago.com/satago.com/tag/on-cashflow)

## [Aged debtors report: what it is and how it can reduce your debtor days ](https://go.satago.com/satago.com/post/aged-debtors-report)

[Tom Killeen](https://go.satago.com/satago.com/author/tom-killeen) 

 Aug 1, 2023 4:30:03 PM

If you’re researching the term “aged debtors report”, it’s probably for one of the following...

[Read more](https://go.satago.com/satago.com/post/aged-debtors-report)

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