• IMPORTANT ACCOUNTS RECEIVABLE CALCULATIONS
    • 18

    IMPORTANT ACCOUNTS RECEIVABLE CALCULATIONS

    Days Sales Outstanding is not a clear indicator of how the entire accounts receivable team is doing on collections. Since DSO relies on total sales for the time period in question, the final DSO can be skewed. If a business using the calculation relies on a highly seasonal sales cycle, DSO will not be indicative
  • THE PROBLEMS WITH DSO
    • 25

    THE PROBLEMS WITH DSO

    Days Sales Outstanding, or DSO, is commonly used as a benchmark to the efficiency and effectiveness of the accounts receivable department. Especially when management reports are created, CFOs, CEOs and owners are looking towards this key metrics to decide whether the accounts receivable department is doing their job well. Unfortunately for the AR department, this

  • CALCULATING DAYS SALES OUTSTANDING
    • 38

    CALCULATING DAYS SALES OUTSTANDING

    Days Sales Outstanding, or DSO, is an extremely common calculation to use as a benchmark of performance in the accounts receivable department. Usually, a controller or CFO will look at this number as a way to gauge how well the accounts receivable department is doing their job, as this calculation will tell you how effective
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