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Dayssaleoutstanding is one of the most widely used criteria for judging the effectiveness of your accounts receivable strategy. DSO Formula (Ending TotalReceivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? Get started with a free demo.
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 DaysSalesOutstanding, or DSO.
Here’s the formula for Average Days Delinquent: ADD = DaysSalesOutstanding (DSO) – Best Possible DaysSalesOutstanding (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.
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