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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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Tackling Customers that Always Pay Late

Your Virtual Credit Manager

To better deal with these customers, it is helpful to segregate them into three groups: Those who are financially strong (low credit risk) and are trying to increase their cash position through late payments. A good measure of how you are doing is your DSO (Days Sales Outstanding). That requires a balancing act.

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Moving Beyond DSO

Your Virtual Credit Manager

Financial Health Priorities: Organizations may have specific financial health priorities such as improving liquidity, managing working capital, or reducing credit risk. 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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Navigating Credit Risk Management in Banking: The Future of Decision-Making and Receivables

Collenda

The Role of ESG in Credit Risk Management As stakeholders increasingly demand accountability in corporate practices, banks are called to align their operations with ESG principles. By maintaining a clear overview of debtor-related processes, institutions can optimise their collection efforts and reduce Days Sales Outstanding (DSO).

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5 Accounts Receivable Collection Mistakes You Should Avoid

Gaviti

Leverage data-driven decision-making to optimize collections strategies, reduce DSO, and improve cash flow. Credit management and monitoring. Get real-time credit risk alerts about customers with increased credit risk to minimize the impact on your cash flow and reduce the likelihood of bad debt.

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Is Your Company Ready for a Downturn in the Economy?

Credit Research Foundation

First, since we haven’t seen significant default activity in recent years, many companies have let up on their credit risk management efforts, as the value proposition wasn’t as compelling as it was during previous economic downturns.

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How CFOs Can Benefit from Emagia Autonomous Finance Platform for Accounts Receivable Automation

Emagia

Real-Time Insights and Analytics: Provides real-time dashboards and predictive analytics for cash flow, DSO, customer payment behavior, and credit risk. Reduces DSO, minimizes bad debt and write-offs with advanced credit risk and deductions management tools.

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