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Top 10 Strategies for Reducing Days Sales Outstanding (DSO)

Your Virtual Credit Manager

The primary way most companies measure AR performance involves looking at the Days Sales Outstanding (DSO) metric. Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Your Virtual Credit Manager is a reader-supported publication.

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DSO Days Sales Outstanding

Emagia

Understanding Days Sales Outstanding (DSO) DSO (Days Sales Outstanding) is a key metric that indicates the average time it takes a company to collect payments after a sale. It is a crucial measure of cash flow and customer credit management.

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Optimizing (Days Sales Outstanding) DSO for Walmart Suppliers: Strategies and Technological Solutions

Emagia

Managing cash flow effectively is crucial for suppliers operating within Walmart’s extensive supply chain. A key metric in this context is Days Sales Outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale.

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A look back at 2024: 5 trends in credit management from the past year

Onguard

Trends in credit management #2: The credit manager shortage remains A combination of an ageing workforce and the perception of credit management as a reactive, administrative role has deterred new entrants and heightened the demand for hybrid skills combining financial expertise and technological proficiency.

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Tackling Customers that Always Pay Late

Your Virtual Credit Manager

To continue reading and learn how to manage high- and low-risk customers who chronically pay late, you must be a paid subscriber. Your Virtual Credit Manager is a reader-supported publication. Learn More About Credit Reports Please share this newsletter with your small business customers.

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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions. The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent.

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Is It Too Late to Achieve Your End-of-Year DSO Goals?

Your Virtual Credit Manager

Chances are, there is a lot that needs to be done in terms of accounts receivable (AR) management between now and December 31st, especially if you are short of your Days Sales Outstanding (DSO) goals. Your Virtual Credit Manager is a reader-supported publication.

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