Current Receivables, DSO and Invoice to Cash

7 Strategies to Reduce DSO and Enhance Cash Flow

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. This includes both current, past and overdue invoices.

DSO

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index

Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

NOVEMBER 20, 2023

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.

Collection Effectiveness Index

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections

6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

JANUARY 2, 2024

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. Many companies evaluate these two KPIs in tandem because it offers a broader understanding of how long it takes to convert invoices to cash.

Collection Effectiveness Index

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding

Credit Management Source

7 Strategies to Reduce DSO and Enhance Cash Flow

Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

6 Cash Flow Performance KPIs Every CFO Needs to Track

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