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Days sales outstanding: effectively managing DSO improves cash flow

TreviPay

An important player in effective cash flow management is days sales outstanding (DSO). DSO is the average number of days a company takes to collect a customer’s payment for a sale. Part of the cash conversion cycle, DSO is also sometimes referred to as “days receivables” or “cash collection period.”.

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Four Tips to Reduce DSO and Increase Cash Flow

TreviPay

Working capital management aims to decrease the amount of time it takes to receive cash after a sale, or days sales outstanding (DSO). One of the most common causes of extended DSO is uncollected sales. In fact, according to a study of 27,000 companies around the world, DSO averages 64 days.

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Top 4 Accounts Receivable Challenges and How to Overcome Them

Gaviti

Some customers might not have paid off their invoice because they are unable to use the current payment methods provided by your company. Work with the customer and see if you can come up with an alternative payment method. However, do you still find that your days outstanding, or DSO , is on the rise?