Days in A/R
Days in A/R is the average number of days it takes to collect your receivables — a speed metric where 30–40 days is healthy and a rising trend signals collection trouble.
Days in A/R (accounts receivable) measures how long, on average, your outstanding claims take to turn into cash. It's calculated by dividing total A/R by average daily charges, and a healthy result is roughly 30–40 days; consistently above about 50 days, or a rising trend, means money is taking too long to come in. It's a speed-of-collection metric, and speed matters because older receivables are harder to collect and closer to deadlines. But the average can be deceptive: a practice with a healthy overall days-in-A/R can still be sitting on a growing pile of old, denied, and unworked claims, because a mass of quickly-paid clean claims pulls the average down and masks the aged tail. That's why days in A/R should always be read alongside A/R aging — the average tells you the overall speed, the aging buckets tell you where the stuck money is. A climbing days-in-A/R is a symptom to trace: slow payer, a denial backlog no one is working, front-end errors causing rework, or claims aging toward timely-filing limits. The dollars that hurt most are the ones aging past 90 days, because they're both the hardest to collect and the closest to expiring.
Volari works the aged tail that a healthy days-in-A/R average hides — the denied and underpaid claims stuck past 90 days that drag on until they're written off or expire.
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