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Days Sales Outstanding (DSO): A Guide

TreviPay

Firstly, there are two main variables to consider: Ending total receivables: Your accounts receivable balance Total credit sales: The value of your outstanding invoices (usually given in dollars, pounds, euros, etc.) Cash sales should not be. And annually enables comparisons with other years.

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Dales Sales Outstanding (DSO): A Guide

TreviPay

Firstly, there are two main variables to consider: Ending total receivables: Your accounts receivable balance Total credit sales: The value of your outstanding invoices (usually given in dollars, pounds, euros, etc.) Cash sales should not be. And annually enables comparisons with other years.

DSO 52
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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130
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Difference Between Standard DSO vs Best Possible DSO

Gaviti

DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? The main difference between these two calculations is that best days sales outstanding does not take into consideration past due invoices. This generally manifests as monthly, quarterly or annually.

DSO 52
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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

To calculate traditional DSO , take the total A/R balance sheet, divide it by your total sales and multiply the quotient by the number of days in the period you want to measure. As a result, it is not an accurate metric of delinquency as it doesn’t take the due date or payment terms into account.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

(DSO alone may account for receivables that don’t directly correlate with credit sales figures in the measured time period, reducing its accuracy when compared with shorter-term CEI calculations.)