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Receivables Turnover vs. Days Sales Outstanding (DSO): What’s the Difference?

Gaviti

Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO). These two KPIs aren’t perfect, but they inform decisions that ultimately determine how much cash you have available. It is often assessed only annually.

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What to Look For When Purchasing an Accounts Receivable Software

Gaviti

4) Understand Your Cash Application Needs One of the traditionally most tedious and error-prone tasks in A/R is the manual matching of invoices to payments. Manual cash application consumes time and resources that could be better allocated to higher value tasks. Self-Service Payment Portal.

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

What are the average days sales outstanding? Are you offering discounts for early payment? How much cash is the company gaining or losing? Cash application. Automatically match customer invoices against payments with 100% accuracy using Gaviti’s payment gateway. Collections analytics.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. However, days sales outstanding are subject to a range of factors and targets should always be based on the wider context of the business and industry. Cash application.

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7 Best Accounts Receivable (A/R) Automation Software Vendors

Gaviti

By centralizing data in one place, you’ll allow for A/R and finance teams as well as marketing, sales and procurement to see metrics such as days sales outstanding (DSO), unique KPIs and customer risk assessments. Cash application. Gaining better visibility into the A/R process.

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