Collecting five days faster frees £44,055
Cash Conversion Cycle Calculator
Every day between paying for the work and collecting for it is cash you are lending the business. This measures the days and prices each one in pounds.
Cash Conversion Cycle Calculator
How many days your cash spends inside the business before it comes back, and what each day is worth.
The conventions this uses
Debtor days are trade debtors over annual revenue times 365. Some houses measure VAT-inclusive debtors against gross revenue; pick one and stay with it.
Creditor and stock days are measured over total operating costs, because a services company has no meaningful cost of goods line to measure against.
The cycle is debtor days plus stock days less creditor days. Positive means you are financing your customers with your own cash.
Take the workbook
The cycle worked in Excel with a released-cash line for every day of improvement, so the target has a value on it.
Download the workbookFAQs
Can’t find the answer you’re looking for? Please chat to our friendly team.
We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
CONTACT
Get in touch
