How long does it take for work to turn into cash?
The number of days between doing the work and being paid for it. It combines unbilled work and unpaid invoices into a single figure that shows how much of the business's cash is tied up in its clients.
Get a finance reviewLock-up days = WIP days + Debtor days. WIP days = WIP ÷ (Annual revenue ÷ 365). Debtor days = Trade debtors ÷ (Annual revenue ÷ 365)
Under 60 days is a good standard for professional practices. Above 90 days usually means the business is funding its clients.
The total of work in progress days (work done but not yet invoiced) and debtor days (invoices issued but not yet paid). Each is calculated by comparing the balance with average daily revenue. It is the professional services version of the cash conversion cycle.
Lock-up is money the business has already spent on salaries and costs but not yet received. A practice with 120 days of lock-up is effectively lending its clients four months of revenue. Reducing lock-up releases cash without winning a single new client, and it is often the quickest way to ease pressure on cash flow or reduce reliance on an overdraft.
Measure both parts separately, as the fixes differ: slow invoicing is an internal process issue, slow payment is a credit control issue. Agree stage billing in contracts so invoices follow the work. Review aged balances monthly and set a clear point at which unpaid invoices are chased. Watch for large one-off balances that distort the average.
Most owner-managed businesses don't, or they work it out in a way that flatters the result. We'll calculate it from your own numbers and show you what it's telling you.
Get a finance review
Strategic finance advisors for businesses that have outgrown bookkeeping and their accountants.
Copyright © 2026 Upscale Consultants Ltd.