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Difference Between Standard DSO vs Best Possible DSO

Gaviti

Days sale outstanding is one of the most widely used criteria for judging the effectiveness of your accounts receivable strategy. This term describes the average number of days it takes a company to turn invoices into cash. It includes both the current receivables and overdue invoices.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. However, days sales outstanding are subject to a range of factors and targets should always be based on the wider context of the business and industry. Get a demo today!

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

Most Accounts Receivable teams use DSO as the main KPI to measure their performance. By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Here’s the formula for Average Days Delinquent: ADD = Days Sales Outstanding (DSO) – Best Possible Days Sales Outstanding (BPDSO) Note the role of the DSO metric in this calculation. Book a demo today to see how you can get started improving your cash flow with Gaviti.