“Our DSOs are down and we have beaten our collections targets for two quarters in a row. I attribute that to ramping up on Lockstep Collect and it’s automation.”
See how accounting departments are succeeding with Lockstep Collect.
External Factors Role on DSO
DSO is driven by customer payment behavior and ability to pay. Customer payment behavior and ability to pay can be influenced by internal and external factors. Internal factors are easier to understand and quantify,
Promoting Social Interaction in Accounts Receivable Remote Work
The social interaction many people get from going into the office is something that is taken for granted until you move into remote work. Many people don’t realize how often they interact face-to-face with
How to Deal with Late Payment Behavior
Late payment behavior increases DSO. If a large percentage of your customers are late payers, they can cause DSO to expand enough to snare you in a cash trap. Collection bottlenecks can make reducing
Creating A Productive Work Environment for Remote Accounts Receivable
If you’re typically an office worker and you’re venturing into the work from home space for the first time, the transition can take a toll on your productivity. If you don’t establish a good working
Building a Remote Work Infrastructure for Accounts Receivable
Making the transition to remote work for many companies can initially be a challenge. At Lockstep Collect, our company was built on a remote work model and we want to share some of the
Don’t Guess About Customer Payment Behavior
Knowing your customer payment behavior can help you to control and reduce DSO. If you know your customer payment behavior you can shape your Credit Policy to achieve the DSO level that is a
Recognizing Your Customer’s Payment Behavior to Decrease DSO
DSO can be a difficult AR metric to analyze and understand. It can be misinterpreted because of seasonal sales impacts and large swings in sales due to sales promotions, new product introductions and changes
How Credit Policy Impacts DSO: Credit Standards
Credit Policy impacts DSO in a number of ways. One way is through Credit Standards. The Credit Standards you set will ultimately determine the risk you take with AR and the DSO your company
How Credit Policy Impacts DSO: Credit Periods
The Credit Period, or number of days in your credit terms before payment is due such as Net 30 Days or 1% 10, Net 30 Days, is often not given the consideration that it
How Credit Policy Impacts DSO: Offering Cash Discounts
Are you wrestling with the decision whether to offer Cash Discounts for early payment as an alternative payment term for your company? It is an important decision because Cash Discounts can have a significant
The Ultimate Playbook to Reducing DSO
Business is good. Orders and shipments are soaring. But, you are running out of cash to pay suppliers, employees and operating expenses. Sound familiar? You may be caught in a cash trap. Cash is the
How to Benchmark Your Company’s DSO
DSO provides an indication of how much of your company’s cash is being used to finance customer accounts receivable. It can tell you if you are headed into a cash trap, where too much
How to Calculate DSO
DSO or Days Sales Outstanding is one of the most commonly used metrics to assess accounts receivable quality and collection efficiency. It is calculated by dividing accounts receivable at the end of the period
Reducing DSO: The Strategy
DSO can suck up your company’s much needed cash resources and keep your company in a cash trap. Manual collections and accounts receivable create bottlenecks that allow DSO to grow and hamper your AR
