Best Possible DSO (BPDSO), Credit and Collections and Small Businesses

Increase the Liquidity of Your Receivables Portfolio

Your Virtual Credit Manager

JULY 25, 2023

Turning your inventory over faster and your payables slower will add cash to your balance sheet, as will raising capital by selling shares in your company or getting a loan or line of credit. Here are the KPIs you will need at a minimum: Days Sales Outstanding (DSO) - This metric tells you how fast you are converting your sales into cash.

Best Possible DSO (BPDSO)

Best Possible DSO (BPDSO) DSO Cash Forecasting Credit and Collections

Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

JULY 11, 2023

DSO is criticized as large variations in monthly sales can drive large changes in the metric, as can extending payment terms. For example, if collections are constant and sales are rising, DSO will increase. Nevertheless, DSO remains a popular and widely used metric by analysts. That sum is your BPDSO.

Best Possible DSO (BPDSO)

Best Possible DSO (BPDSO) DSO AR Metrics Credit and Collections

Credit Management Source

Increase the Liquidity of Your Receivables Portfolio

Is Your AR Performance Measuring Up?

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