{"id":10061,"date":"2024-05-03T10:00:03","date_gmt":"2024-05-03T14:00:03","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=10061"},"modified":"2026-07-09T10:34:38","modified_gmt":"2026-07-09T14:34:38","slug":"days-payable-outstanding-defined","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/days-payable-outstanding-defined\/","title":{"rendered":"Days payable outstanding \u2013 defined"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tDays payable outstanding \u2013 defined\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2024-05-03T10:00:03-04:00\">May 3, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Days payable outstanding \u2013 defined\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/days-payable-outstanding-defined\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Do you wonder what terms like \u201cDPO\u201d or \u201cDays Payable Outstanding\u201d mean? If you\u2019ve ever been stumped by these terms or perhaps, you\u2019ve heard about them but never quite understood what they meant, then this article is for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019re breaking down this essential business metric, lifting the veil off the mystery that is Days Payable Outstanding to get a firm grip on what it means for your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep reading for a breakdown of the DPO meaning and why it\u2019s significant to your business\u2019s financial standing.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here&#8217;s what we&#8217;ll cover<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#what\" data-level=\"2\">What does Days Payable Outstanding (DPO) mean?<\/a><\/li><li><a href=\"#calculation\" data-level=\"2\">The DPO calculation<\/a><\/li><li><a href=\"#example\" data-level=\"2\">An example of the DPO formula<\/a><\/li><li><a href=\"#understanding\" data-level=\"2\">Understanding the significance of DPO<\/a><\/li><li><a href=\"#balance\" data-level=\"2\">Striking the right balance with DPO<\/a><\/li><li><a href=\"#final\" data-level=\"2\">Final thoughts on DPO<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What does Days Payable Outstanding (DPO) mean?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.wallstreetprep.com\/knowledge\/days-payable-outstanding-dpo\/\" target=\"_blank\" rel=\"noreferrer noopener\">Days Payable Outstanding<\/a>, often abbreviated as DPO, is a financial metric that shows how long, on average, it takes for a company to pay its invoices from trade creditors, such as suppliers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In simpler terms, it measures the average number of days a company takes to pay its bills. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This indicator gives us insights into a company\u2019s management of payables and cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To illustrate the DPO meaning, let\u2019s imagine two hypothetical companies: QuickPay Corp and SlowPay Ltd. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">QuickPay Corp has a DPO of 30 days. Meaning on average, it pays its bills within a month of receiving them. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, SlowPay Ltd has a DPO of 90 days, indicating it usually takes about 3 months to pay its bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A first glance might lead you to think QuickPay Corp is more efficient because it pays faster. However, from a cash flow perspective, SlowPay Ltd may be in a stronger position. ClowPay Ltd gets to utilize its cash on hand for a longer period before paying off its debts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This could potentially allow SlowPay Ltd to invest that money back into the business, fund its operations, or even earn interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That said, it\u2019s important to strike a balance. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If SlowPay Ltd takes too long to pay its suppliers, it could potentially harm its supplier relationships or risk missing out on early payment discounts. Therefore, an optimal DPO isn\u2019t necessarily about paying as soon as possible or delaying as long as possible; it\u2019s about finding a balanced duration that maximizes cash utility without compromising supplier relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"calculation\">The DPO calculation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Calculating DPO might seem like a complex task, but once you understand the formula and its components, you\u2019ll find it surprisingly straightforward. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The formula involves 3 essential components: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accounts Payable,&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/cost-of-goods-sold-what-is-it-and-how-to-calculate-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cost of Goods Sold (COGS)<\/a>, <\/li>\n\n\n\n<li>and the number of days in the period you\u2019re analyzing.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-payable\/\"><strong>Accounts Payable (AP)<\/strong><\/a>: This represents the money your company owes to its suppliers or vendors for goods or services received. You can typically find this information on your balance sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/cost-goods-sold-cogs\/\"><strong>Cost of Goods Sold (COGS)<\/strong><\/a>: This is the total cost of all the goods sold by your company during a particular period. It includes direct costs associated with producing the goods your company sells, such as raw material costs and direct labour costs. This information is typically found in your income statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Number of days<\/strong>: This represents the period you\u2019re analyzing. This could be a year (365 days), a quarter (90 days), a month (30 days), or any other period you choose, depending on the specificity you want in your analysis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, to calculate DPO, you simply divide the accounts payable by the cost of goods sold, then multiply the result by the number of days in the period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DPO = (AP \/ COGS) x Number of days<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This formula essentially translates the payable amount you have into a timeframe. It shows how long it typically takes for you to settle your bills. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The calculation is most commonly done on an annual basis using 365 days. However, it can be adjusted for any period. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, if you want a quarterly analysis, you can adjust the number of days to 90. This flexibility allows you to adjust the calculation to suit your specific analytical needs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;ll gain insights that are relevant to your company\u2019s operations and financial planning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"example\">An example of the DPO formula<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To put the Days Payable Outstanding calculation into context, let\u2019s consider an example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a company, Stellar Manufacturing, has an account payable of $150,000 and a COGS of $600,000. We want to calculate the DPO for the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s how the calculation would look using the Days Payable Outstanding formula:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DPO = ($150,000 \/ $600,000) x 365 = 91.25 days<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The resulting DPO indicates that Stellar Manufacturing, on average, pays its bills about 91 days after receiving them.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Discover Sage Intacct<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get to know the new cloud accounting and financial management solutions for your industry\u2019s specific needs.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/sage-business-cloud\/intacct\/quickbooks-alternative\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-6876\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Learn more about Sage Intacct<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1331173398-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1331173398-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"understanding\">Understanding the significance of DPO<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As mentioned above, a higher DPO means that a company takes a longer time to pay its suppliers. This can be beneficial from a&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/small-business-accounting-cash-flow-101\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow&nbsp;<\/a>perspective. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It implies that the company can use the cash it has on hand for a more extended period before settling its payables.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Conversely, a lower DPO suggests that the company pays its bills faster. This might reflect favourably on the company\u2019s reputation. However, it may also mean that cash is not being used as efficiently as it could be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just as the speed of life differs between a bustling city and a tranquil village, DPO varies significantly between industries. Factors such as payment terms, business models, and industry practices all contribute to this variation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, industries such as the retail sector might have a shorter DPO due to quick inventory turnover and traditionally shorter payment terms. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, a manufacturing business, which often deals with large-scale suppliers and has longer production cycles, might have a higher DPO.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, let\u2019s say the Days Payable Outstanding industry average for retail is around 30 days, but for manufacturing, it\u2019s 60 days. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a retail company has a DPO of 45 days, it might seem reasonable when compared with manufacturing. However, this figure is considerably higher than the retail industry average. It suggests that this retail company takes a longer time to pay suppliers compared to its industry peers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, comparing your company\u2019s DPO with the industry average provides a more accurate picture of your payment practices. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s like comparing apples to apples rather than apples to oranges. It allows you to benchmark your company against others in the same sector. You&#8217;ll gain insight into your relative performance and offer a clearer understanding of your cash management efficiency. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, analyzing the trends in your DPO over time, alongside industry averages, can indicate the effectiveness of changes in your payment policies or cash management strategies. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes DPO not just a snapshot of your current situation, but a tool for monitoring progress and driving improvements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"balance\">Striking the right balance with DPO<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DPO, like many financial metrics, is not just about reaching the highest or lowest number. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, it\u2019s about finding the right balance that works best for your business\u2019s unique circumstances and strategies. This balancing act is crucial because it directly impacts your relationships with suppliers and your overall cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On one hand, a higher DPO means that your company is able to hold onto its cash longer. This can be advantageous, as it allows for greater liquidity and the opportunity to use that cash for other operational needs or investments. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re essentially extending an interest-free loan from your suppliers, enabling you to make the most of your available resources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your company manages to negotiate longer payment terms with suppliers without penalties, it could potentially use the cash to fund its operations, invest in growth opportunities, or even earn interest. This could make a significant difference in the company\u2019s financial health and growth trajectory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, excessively stretching the DPO could potentially strain your relationship with suppliers. They might become reluctant to offer the same generous payment terms in the future or could even decide to stop doing business with you altogether.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, some suppliers offer discounts for early payments, which you could miss out on if you take too long to pay. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, terms like \u201c2\/10, net 30\u2033 mean that the supplier offers a 2% discount if the bill is paid within 10 days instead of the standard 30 days. If your DPO is significantly above this, your business could be leaving money on the table.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, a very low DPO might seem ideal since it means your company pays its bills promptly. While this can foster good relationships with suppliers, it might also indicate that you\u2019re not maximizing your cash efficiency. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quick payments can tie up cash that could otherwise be used for running daily operations or capitalizing on investment opportunities. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In essence, managing DPO is a delicate act of juggling the benefits of holding onto cash with the need to maintain healthy supplier relationships and optimizing cash management. It\u2019s about finding that sweet spot\u2014a DPO that reflects strategic payment timing, balanced cash utilization, and sustainable supplier relationships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read more: <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-vs-accounts-receivable-a-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounts payable vs accounts receivable &#8211; a guide<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts on DPO<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In conclusion, DPO is more than just a financial metric.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a strategic tool that can offer valuable insights into your company\u2019s&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/small-business-accounting-cash-flow-101\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow<\/a>&nbsp;and payables management. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It allows you to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>benchmark against industry peers, <\/li>\n\n\n\n<li>evaluate the effectiveness of your payment practices, <\/li>\n\n\n\n<li>and make informed decisions that can influence your company\u2019s financial health.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, the power of DPO lies not just in understanding what it is, but in how to use it effectively. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The right DPO for your company strikes a balance between maintaining a healthy cash flow and preserving good relationships with suppliers. By understanding and managing your DPO wisely, you\u2019re not just crunching numbers, you\u2019re shaping your business\u2019s financial future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remember, in the world of business, knowledge is power, and understanding your DPO gives you the power to manage your cash more efficiently, negotiate better terms with suppliers, and ultimately, drive your business success. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, take a closer look at your DPO, and uncover the opportunities it might hold for your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor&#8217;s note: This article was originally published in September 2023 and has been updated for relevance.<\/em><\/p>\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/financial-insights\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tfinancial insights\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/midsized-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tmidsized business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-14816 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-finances tag-expenses tag-financial-insights tag-profit-and-loss tag-small-business tag-tax business_type-small-business business_type-medium-business industry-healthcare card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-20T06:21:32-04:00\">July 20, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">18 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/guide-to-dental-practice-accounting\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tDental practice accounting: A complete guide\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tUnderstanding dental practice accounting helps your practice run smoothly and profitably, so you can spend less time on the books and more time on patient care.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-14812 post type-post status-publish format-standard has-post-thumbnail hentry category-business-process category-growth-customers category-money-matters tag-accounting-101 tag-business-finances tag-change-management tag-international-trade tag-inventory-management tag-sales-management tag-supply-chain-management business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/sales-order-management\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/11\/saas-revenue-recognition-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/11\/saas-revenue-recognition-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/11\/saas-revenue-recognition-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/11\/saas-revenue-recognition.jpg 1200w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-17T13:25:22-04:00\">July 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is sales order management?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-14804 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-business-finances tag-business-management tag-business-strategy tag-cash-flow tag-cfo tag-financial-insights tag-making-financial-decisions tag-nonprofit business_type-small-business business_type-medium-business industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/how-to-create-a-church-budget\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_NFP-Human-Services-shelter_0264-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_NFP-Human-Services-shelter_0264-684x384.jpeg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_NFP-Human-Services-shelter_0264-768x512.jpeg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/08\/Mar2025_NFP-Human-Services-shelter_0264-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-17T09:31:53-04:00\">July 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to create a church budget\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-14800 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-business-finances tag-investments business_type-small-business business_type-medium-business industry-financial-services\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-percent-of-your-portfolio-should-be-cash\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/03\/Sage_BrandShootNC_Feb2024_HR-Professionals_2126-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/03\/Sage_BrandShootNC_Feb2024_HR-Professionals_2126-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/03\/Sage_BrandShootNC_Feb2024_HR-Professionals_2126-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/03\/Sage_BrandShootNC_Feb2024_HR-Professionals_2126-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-17T07:08:02-04:00\">July 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat percentage of your portfolio should be cash?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-14767 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-continuity tag-financial-insights tag-how-to-grow-your-business tag-making-financial-decisions tag-midsized-business tag-small-business business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-fair-market-value-fmv\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1272758830-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1272758830-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1272758830-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1272758830-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-16T05:26:46-04:00\">July 16, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tFair market value: What it is and how to calculate it\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover what Days Payable Outstanding (DPO) means, its calculation, significance, and how managing DPO effectively can impact your business.<\/p>\n","protected":false},"author":356,"featured_media":10007,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[266,190,263,267],"business_type":[3,99],"lilypad":[],"context":[],"industry":[],"persona":[100,75,83],"imagine_tag":[54,67],"coauthors":[312],"class_list":["post-10061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","tag-financial-insights","tag-midsized-business","tag-small-business","business_type-small-business","business_type-medium-business"],"sage_meta":{"region":"en-ca","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/09\/GettyImages-1261563958.jpg","imagine_tags":{"54":"Medium Businesses","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/10061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=10061"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/10061\/revisions"}],"predecessor-version":[{"id":14702,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/10061\/revisions\/14702"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/10007"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=10061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=10061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=10061"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=10061"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=10061"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=10061"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=10061"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=10061"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=10061"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=10061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}