Gaviti

SEPTEMBER 23, 2024

Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO). How to calculate days sales outstanding is simple but important. A low receivables turnover and high DSO typically means that your process needs to be optimized.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Credit Sales 52

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

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