This is a snapshot in time that will help your company evaluate, along with other calculations, the overall performance of your collections department and your ability to convert AR to cash. What you'll learn in this blog:Īverage days delinquent (ADD) is the average day’s invoices are past due, the amount of time between invoice due date and the date it is paid. Keeping track of the number lets you know how many days late customers are paying, on average, at any given time. One of the most important metrics to monitor is average days delinquent (ADD)., which is also known as delinquent days sales outstanding.

To optimize your cash flow and minimize late payments, it is vital for AR teams to make the most of the data available to them.