Days Sales Outstanding (DSO) is a major account receivable (AR) KPI and goal for accounting departments. DSO increased for many companies over the past 18 months and remains a challenge in the economic recovery.
The Ultimate Playbook to Reducing DSO Are you running out of cash to pay suppliers, employees and operating expenses? Chances are you may be caught in a cash trap. Cash is the key component
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,
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
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
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
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
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
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
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
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