The Esker Blog

JANUARY 3, 2023

Days Sales Outstanding (DSO) is a common measure for how long it takes a company to collect on an invoice. The goal is to reduce DSO to have the lowest DSO possible and quickly recover payment on accounts receivable (AR). DSO = ($125,000 / $950,000) × 365 days = 48. Check out Esker’s payment portal.

DSO 98

DSO Accounts Receivable (AR) Credit and Collections Days Sales Outstanding 98

TreviPay

JANUARY 11, 2023

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.”.

Days Sales Outstanding 98

Days Sales Outstanding DSO Credit and Collections Alternative Payment Methods 98

Emagia

NOVEMBER 5, 2024

What is the Days of Sales Outstanding Ratio? The Days of Sales Outstanding (DSO) ratio is a key metric that measures the average number of days it takes for a company to collect payment after a sale. DSO provides insight into a company’s liquidity and cash flow health.

DSO 40

DSO Credit and Collections Credit Sales 40

Your Virtual Credit Manager

MAY 14, 2024

If conditions are satisfactory and all your credit and collection assignments have been completed, you can then address the many other tasks and challenges requiring your attention. Do you need help collecting past due receivables or understanding your customer portfolio risks? Why Are Metrics Needed if You Have an AR Ledger?

AR Metrics 130

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

Emagia

NOVEMBER 7, 2024

Calculation of Days Sales Outstanding The calculation of Days Sales Outstanding (DSO) is crucial for any business looking to manage its cash flow effectively. DSO represents the average number of days that a company takes to collect payment after a sale has been made. Why is DSO Important?

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Credit Sales 40

Emagia

DECEMBER 30, 2024

This comprehensive guide delves into whether accounts receivable is recorded as a debit or credit, the principles of double-entry bookkeeping, and the implications for financial statements. The Role of Debits and Credits in Accounting In accounting, debits and credits are fundamental concepts used to record transactions.

Accounts Receivable (AR) 40

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

Emagia

NOVEMBER 11, 2024

Days of Sales Outstanding Days of Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment after a sale has been made. Understanding DSO is crucial for effective cash flow management.

DSO 40

DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 7, 2024

Days of Sales Outstanding (DSO) is a metric that shows the average number of days it takes a business to collect payments after a sale. Why DSO Matters High DSO indicates inefficiency in collection, while low DSO shows effective cash collection processes.

DSO 40

DSO Credit and Collections Credit Sales 40

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you. it just might help them pay you sooner!

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Emagia

MARCH 3, 2025

The Accounts Receivable (AR) Process Cycle is a fundamental component of a company’s financial operations, encompassing the series of actions taken to manage and collect payments owed by customers for goods or services provided on credit. A structured dispute resolution process minimizes delays in payment collection.

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Gaviti

SEPTEMBER 7, 2023

Most business managers use the standard DSO when running the calculations, but it is also possible to calculate the best DSO. What Is ‘Standard’ DSO? Most often, managers use a timed cycle to calculate DSO. DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO?

DSO 52

DSO Days Sales Outstanding Past Due Invoices Credit and Collections 52

Gaviti

SEPTEMBER 23, 2024

Optimizing your collections process is crucial for cashflow. The better you optimize collections procedures and tasks, the more efficient and effective your A/R becomes. Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO).

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Credit Sales 52

TreviPay

MAY 12, 2023

Days sales outstanding (DSO) is another good example. What is days sales outstanding (DSO)? Days sales outstanding (DSO) (also known as days receivables or cash collection period ) is a measure used to help determine the state of businesses’ collection process. Cash sales should not be.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Total Receivables 52

TreviPay

MAY 12, 2023

Days sales outstanding (DSO) is another good example. What is days sales outstanding (DSO)? Days sales outstanding (DSO) (also known as days receivables or cash collection period ) is a measure used to help determine the state of businesses’ collection process. Cash sales should not be.

DSO 52

DSO Days Sales Outstanding Credit and Collections Total Receivables 52

Gaviti

APRIL 3, 2024

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. Traditionally, a low DSO indicates that your company has capital available and is in good financial standing. It has $1 million in outstanding receivables but total sales of $1.5

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Gaviti

MARCH 4, 2024

Once an invoice hits accounts receivable (A/R), it enters what’s called the average collection period. Other common names include “days sales in accounts receivable,” “average receivables collection period,” or “ days sales outstanding (DSO).” What Is an Accounts Receivable Average Collection Period?

DSO 52

DSO Credit and Collections Days Sales Outstanding Credit Sales 52

Onguard

FEBRUARY 23, 2023

CFOs and CEOs, are you familiar with DSO? While many businesses focus on improving their DPO (supplier side) and DOI (inventory holding) metrics to enhance their cash flow, the real impact can be found by examining your customer base and their payment habits, which is reflected in the DSO metric. How do you calculate DSO?

DSO 40

DSO Sales Weighted DSO Credit and Collections Collector 40

Emagia

MAY 16, 2023

The average collection period is an important accounting metric that evaluates a company’s ability to manage its accounts receivable (AR) effectively. It measures the time it takes for the business to collect payments from its clients, which reflects its cash flow effectiveness and ability to meet short-term financial obligations.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Credit and Collections DSO Credit Sales 52

Gaviti

NOVEMBER 20, 2023

Most Accounts Receivable teams use DSO as the main KPI to measure their performance. By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO. For example, since each company has different payment terms (e.g,

Collection Effectiveness Index 52

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections 52

Gaviti

JANUARY 2, 2024

It offers data on the effectiveness of your collection efforts by measuring the average number of days it takes to collect overdue payments. But continually high ADD scores across clients may indicate poor collection efficiency on your side. If you need help with this, check out how to calculate DSO.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent Days Sales Outstanding DSO 52

TreviPay

AUGUST 27, 2024

It is crucial in determining how efficiently a business is collecting payments from customer credit purchases during a specific period of time. The Accounts Receivable Turnover Ratio is a financial measurement used to determine how efficiently a company collects payments from its customers during a time period, typically a year.

Credit and Collections 52

Credit and Collections Bad Debt Credit Sales DSO 52

Emagia

NOVEMBER 5, 2024

Introduction to DSO Calculation Formula The DSO calculation formula measures how quickly a company collects cash from credit sales. Formula for DSO To calculate DSO: DSO = (Accounts Receivable / Total Credit Sales) x Number of Days.

DSO 40

DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 5, 2024

What is DSO? The DSO (Days Sales Outstanding) formula is a key metric that measures the average number of days it takes a company to collect payment after a sale. Understanding DSO DSO provides insights into the company’s credit and collections efficiency and is used by businesses of all sizes.

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Credit Sales 40