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Credit Management Days Sales Outstanding DSO 
Your Virtual Credit Manager
JANUARY 7, 2025
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.
Emagia
NOVEMBER 7, 2024
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. Why is DSO Important?
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Emagia
DECEMBER 18, 2024
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.
Your Virtual Credit Manager
NOVEMBER 19, 2024
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. You can’t expect them to process payments the last ten days of December. That’s the bad news.
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Your Virtual Credit Manager
FEBRUARY 25, 2025
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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Your Virtual Credit Manager
FEBRUARY 20, 2024
The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. 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.
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Emagia
NOVEMBER 7, 2024
DSO Mean DSO, or Days Sales Outstanding, is a key financial metric that measures the average number of days it takes for a company to collect payment after a sale. Understanding DSO mean is essential for managing cash flow effectively.
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Your Virtual Credit Manager
JANUARY 17, 2023
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.
Your Virtual Credit Manager
SEPTEMBER 3, 2024
billion in annual sales was dissatisfied with the management of its Accounts Receivable (AR). Days Sales Outstanding (DSO) was at 63 days on predominantly Net 30 day terms. Do you need help assessing your customers’ credit risks?
Your Virtual Credit Manager
JUNE 11, 2024
My first exposure to the power of accounts receivable (AR) automation came in 1990 when I was credit manager at ERICO Fasteners, a mid-market, specialty metals manufacturer. During the 10 years I’d been in business credit, I had never seen anything like it. Our problems, however, were systemic.
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Emagia
FEBRUARY 21, 2025
Understanding Accounts Receivable Accounts receivable represent the outstanding invoices a company has or the money clients owe the company for goods or services provided on credit. Managing these receivables effectively ensures timely cash inflows and reduces the risk of bad debts. What is Days Sales Outstanding (DSO)?
Emagia
DECEMBER 3, 2024
Manufacturing: Global manufacturers often deal with complex credit risks and diverse customer bases. Emagia helps streamline credit management, automate collections, and provide actionable insights into customer payment behaviors. Emagia automates invoicing and deduction management, ensuring faster cash realization.
Your Virtual Credit Manager
MAY 14, 2024
To continue reading and learn the daily, weekly and monthly AR metrics you should be tracking, you’ll need a paid subscriber to Your Virtual Credit Manager …our standard subscription is only $5 per month or $49 annually. Learn More About Credit Reports Please share this newsletter with your small business customers.
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Gaviti
FEBRUARY 4, 2025
Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many traditional KPIs, like DSO, are not always a good indicator of collection success. Run a Consistent and Robust Credit Process Credit management is the foundation of effective AR.
Your Virtual Credit Manager
FEBRUARY 21, 2023
Subscribe now Days Sales Outstanding (DSO) From a credit perspective, DSO isn’t our favorite metric, but it is a standard used by accounting and finance professionals to reflect receivables turnover. The problem with DSO is that AR performance can be improving at the same time DSO is rising.
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Your Virtual Credit Manager
FEBRUARY 27, 2024
In order for that to happen, everybody needs to be aligned in regard to sales and credit in general and the objectives of the order-to-cash process (O2C) in particular. The experts at Your Virtual Credit Manager can help you bring in the cash. Are there past due accounts you are trying to collect?
Your Virtual Credit Manager
JUNE 25, 2024
Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. This may seem like pretty standard stuff, but if you are not tracking DSO on a monthly basis, you may not notice the trends. Do you need help managing credit and collections?
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Gaviti
FEBRUARY 27, 2025
Credit Congress & Expo Dates: May 1821, 2025 Location: Cleveland, Ohio Website: Credit Congress & Expo 2025 Credit is a vital component of accounts receivable health. The National Association of Credit Management (NACM) hosts the annual Credit Congress & Expo, focusing on business credit and financial management.
Your Virtual Credit Manager
DECEMBER 19, 2023
As part of that budget, you have likely made some accommodation for your accounts receivable (AR), probably in the form of a Days Sales Outstanding (DSO) objective based on past performance. Hopefully, that is why you are reading Your Virtual Credit Manager.
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Your Virtual Credit Manager
SEPTEMBER 10, 2024
Consequently, Days Sales Outstanding (DSO) increased by almost 50 percent with customer delinquency deteriorating so much that this supplier’s borrowing capacity under its asset-based credit facility was severely restricted. Poor credit approval and collection practices can single-handedly wreck DSO.
Gaviti
SEPTEMBER 7, 2023
Days sale outstanding is one of the most widely used criteria for judging the effectiveness of your accounts receivable strategy. 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?
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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.
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Gaviti
DECEMBER 18, 2024
These types of reports include cash flow forecasting, aging reports, DSO calculations, and A/R performance. Track A/R performance metrics and KPIs such as collection rates, total A/R, DSO, customer risk, collective effectiveness index (CEI) and accounts receivable turnover ratio (ART). A/R performance.
Gaviti
NOVEMBER 24, 2024
That means your accounts receivable team will want to do everything in its power to increase cash flow and reduce your DSO. Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance. Establish proactive credit management policies.
Your Virtual Credit Manager
DECEMBER 6, 2022
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 benefits from the company’s improvement in its receivables management is illustrated in the following chart. Cash is king.
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Your Virtual Credit Manager
JULY 25, 2023
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. It is best understood in relation to Best Possible DSO (BPDSO) which is essentially what your DSO would be if every customer paid on time.
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
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Emagia
DECEMBER 4, 2024
Manufacturing Manufacturers often juggle extensive customer bases, complex credit risks, and high invoicing volumes. Emagia provides tools to: Automate credit management and collections. Reduce Days Sales Outstanding (DSO). Gain actionable insights into customer payment behaviors.
Your Virtual Credit Manager
JULY 11, 2023
This article focuses on one widely used metric, Days Sales Outstanding (DSO) and the best ways to understand it. Subscribe now Understanding DSO DSO, (along with an Aging Analysis of the unpaid AR), is the most popular metric used to gauge AR management performance. Keep it simple and consistent.
Your Virtual Credit Manager
JANUARY 30, 2024
The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. More About Purchasing Credit Reports Over time, insights gained from this approach can inform risk assessments for new accounts, which you can use to refine your credit risk parameters.
Lockstep
JUNE 15, 2022
For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Learn More.
Your Virtual Credit Manager
DECEMBER 12, 2023
Consequently, cash flow decreased while Days Sales Outstanding (DSO) and Past Due Receivables skyrocketed. When the renewals were finally secured, all of the prior time and material invoices were credited, and new invoices were generated for the service contracts. The customers, however, did not pay the invoices.
Onguard
JULY 25, 2024
2 Three main challenges to technology in credit management Although new technologies -such as AI, RPA and blockchain- are on the rise within the finance department, implementation does not always go smoothly: 28% of finance professionals state that their team lacks the skills and/or knowledge to implement the technology.
Your Virtual Credit Manager
APRIL 2, 2024
To continue reading and learn the value of using commercial credit scores to rank the customers in your AR portfolio, as well as six ways to leverage customer rankings, you need to be a paid subscriber to Your Virtual Credit Manager.
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Gaviti
JANUARY 5, 2025
A/R performance metrics that the software tracks should include best possible DSO, Collective Effectiveness Index (CEI), Average Days Delinquent (ADD), and Accounts Receivable Turnover Ratio (ART). 5) Streamline your dispute management Invoice and payment disputes are among the top reasons invoices remain unpaid for long periods.
TreviPay
MARCH 20, 2023
Credit management is integral to accounts receivable management. Good credit management supports consistent cash flow, smooth payment collections, customer satisfaction, and much else. It covers multiple different smaller components involved in issuing, monitoring, and collecting credit.
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Gaviti
APRIL 11, 2024
What are the average days sales outstanding? The most common is DSO. Get a holistic view of your A/R data that includes a combination of traditional metrics such as DSO, collections, customer risk, etc., Credit management and monitoring. How quickly are customers paying their invoices?
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Emagia
FEBRUARY 20, 2025
Automating these processes not only enhances accuracy but also ensures timely collections, thereby improving cash flow and reducing the days sales outstanding (DSO). Credit Management Automation Implementing automated credit management allows businesses to assess customer creditworthiness efficiently.
Your Virtual Credit Manager
NOVEMBER 1, 2022
It is most effective when the Escalation Protocols are agreed to by management and explained to all customer-facing personnel. Your Virtual Credit Manager now offers reasonably priced business credit reports through Accredit, a leading reseller of credit bureau reports.
Onguard
OCTOBER 31, 2023
Credit management, a term often associated with the finance department, turns out to be a dynamic process involving several departments within an organisation. Think sales, marketing, customer success and IT. Let’s face it, manual credit checks and invoice processing can be time-consuming and error-prone.
Your Virtual Credit Manager
APRIL 11, 2023
To avoid these types of events you need to establish credit limits based on a customer’s creditworthiness, set parameters for approving orders for all customers both new and old, and then stick to the boundaries you have determined. There are multiple costs and vulnerabilities that emerge. An under performing AR.
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Gaviti
OCTOBER 30, 2023
When traditional credit management and cash application is automated, it reduces the need for staff and makes the credit management and customer payment process more efficient. Your financial staff has rates of high turnover. You want to simplify a complex process that involves multiple stakeholders.
Know-It Global
APRIL 13, 2023
This is why it’s crucial that businesses get a firm grip of their cashflow, and one of the most effective ways to maximise your cashflow is by reducing your debtor days. What are debtor days? Debtor days, or as some call days sales outstanding (DSO), is a measure of how long it takes for a company to collect payment from its customers.
Gaviti
JUNE 25, 2024
Forecasting Accounts Receivable Collections Using DSO The easiest and most accurate way to forecast your accounts receivable is using days sales outstanding (DSO). Here are the steps to calculate an accounts payable projection using DSO. Credit Management and Monitoring.
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