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Rising DaysSalesOutstanding DSO measures the average number of days it takes to collect payment after a sale. Deteriorating Customer Relationships Deteriorating relationships with customers may lead to delayed payments or defaults, as trust and communication break down.
As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: DaysSalesOutstanding is the most common metric for measuring accounts receivable (AR) performance. As the saying goes, you can’t manage what you don’t measure.
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