Your Virtual Credit Manager

FEBRUARY 20, 2024

Learn More About YVCM Consulting The Limitations of DSO Days Sales Outstanding (DSO) is widely used to assess the efficiency of a company's AR management. DSO formulas looks at sales volume during a period of time set against the ending AR balance to provide a measure of receivables turnover.

DSO 130

DSO Days Sales Outstanding Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind. Collections is always playing a bit of catch up to sales.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

MAY 14, 2024

Monthly: The Three Weekly Metrics listed above Days Sales Outstanding (DSO) – This metric expresses the level of AR as the number of days of sales that comprise your AR total. For example, if you sell on Net 30 day credit terms, and all your invoices were paid on the due date, your DSO would be 30 days.

AR Metrics 130

AR Metrics DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

DECEMBER 6, 2022

The company ended up writing off millions of dollars in bad debt. Even worse, the company’s stock price was depressed because of the company’s high Days Sales Outstanding (DSO) , a common measure of AR management effectiveness. The increase in cash on hand was equivalent to four months of sales.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Emagia

DECEMBER 30, 2024

This aligns with the accounting equation, as an increase in assets (debit) corresponds with an increase in equity through revenue (credit). Income Statement: Recording credit sales increases revenue, impacting net income. Frequently Asked Questions Is accounts receivable a debit or credit?

Accounts Receivable (AR) 40

Accounts Receivable (AR) Days Sales Outstanding Credit and Collections Bad Debt 40

Emagia

MARCH 3, 2025

Introduction to Accounts Receivable Process Cycle The Accounts Receivable Process Cycle refers to the systematic approach businesses use to manage credit sales and collect payments from customers. This cycle begins with establishing credit policies and extends through invoicing, payment collection, and account reconciliation.

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Gaviti

MARCH 4, 2024

Other common names include “days sales in accounts receivable,” “average receivables collection period,” or “ days sales outstanding (DSO).” Businesses often sell their products or services on credit, expecting to receive payment at a later date. This is also called your “A/R turnover ratio.”

DSO 52

DSO Credit and Collections Days Sales Outstanding Credit Sales 52