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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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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. That’s the bad news.

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Moving Beyond DSO

Your Virtual Credit Manager

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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Understanding DSO Mean

Emagia

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. Businesses need to analyze these factors to optimize their DSO.

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

Onguard

An earlier study by Allianz unveiled an increase in global DSO by +3 days in 2023 and predicted longer payment terms amid squeezing profitability in 2024. Amid continuous economic and geopolitical uncertainty, forecasts for 2025 continue to underscore DSO as a top priority for organisations that wish to maintain financial resilience.

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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. Why is DSO Important? This helps determine the average collection period.