The Esker Blog

JANUARY 3, 2023

Days Sales Outstanding (DSO) is a common measure for how long it takes a company to collect on an invoice. The goal is to reduce DSO to have the lowest DSO possible and quickly recover payment on accounts receivable (AR). DSO = ($125,000 / $950,000) × 365 days = 48. DSO increases are often driven by a few large customers.

DSO 98

DSO Accounts Receivable (AR) Credit and Collections Days Sales Outstanding 98

Gaviti

NOVEMBER 21, 2024

Missing details, such as purchase order numbers or bank information, can lead to disputes or delays in processing payments. Tip: Use A/R solutions with template features to ensure all essential information is included. Leverage data-driven decision-making to optimize collections strategies, reduce DSO, and improve cash flow.

Automated Cash Application 98

Automated Cash Application Credit and Collections Cash Applicator Deductions 98

Gaviti

JANUARY 6, 2025

3) Include all the necessary details Make sure to provide all the necessary details for contact and payment so your customer has all the information they need in the invoice itself. 7) Keep your tone polite and professional Many businesses are emotional or add remarks and irrelevant information to their letters.

Credit and Collections 92

Credit and Collections Days Sales Outstanding Invoice to Cash Invoice Amount 92

Your Virtual Credit Manager

JUNE 11, 2024

A new accounting system designed for custom manufacturers, with very little collections functionality, even less than the previous system, had been implemented by ERICO before I was hired to fix the mess it had created for the credit function — a Days Sales Outstanding (DSO) in excess of 90 days. Our problems, however, were systemic.

AR Automation 130

AR Automation DSO Collector Accounts Receivable (AR) 130

Emagia

NOVEMBER 11, 2024

Days of Sales Outstanding Days of Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment after a sale has been made. Understanding DSO is crucial for effective cash flow management. Businesses must consider these factors to manage their DSO effectively.

DSO 40

DSO Credit and Collections Credit Sales 40

Emagia

NOVEMBER 7, 2024

Calculation of Days Sales Outstanding The calculation of Days Sales Outstanding (DSO) is crucial for any business looking to manage its cash flow effectively. DSO represents the average number of days that a company takes to collect payment after a sale has been made. Why is DSO Important?

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Credit Sales 40

Gaviti

DECEMBER 18, 2024

These types of reports include cash flow forecasting, aging reports, DSO calculations, and A/R performance. These reporting features also help businesses predict trends and make more informed strategic business decisions. With the help of its AI assistant, it gathers information from various financial systems (e.g,

Collection Effectiveness Index 52

Collection Effectiveness Index DSO Credit and Collections Invoice to Cash 52

TreviPay

JANUARY 7, 2023

Working capital management aims to decrease the amount of time it takes to receive cash after a sale, or days sales outstanding (DSO). One of the most common causes of extended DSO is uncollected sales. In fact, according to a study of 27,000 companies around the world, DSO averages 64 days.

DSO 59

DSO Days Sales Outstanding Alternative Payment Methods Credit and Collections 59

SAP Credit Management

JANUARY 13, 2023

For more information, see SAP Note 1096307. To Summarize the use of Update behavior of fields in end routine completely depends on your requirements as to how you would like to see the data populated in the DSO after the end-routine in Transformation is executed.`. Example for better Understanding.

DSO 170

DSO Default 170

Gaviti

SEPTEMBER 23, 2024

Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO). These two KPIs aren’t perfect, but they inform decisions that ultimately determine how much cash you have available. It is often assessed only annually.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Credit Sales 52

Your Virtual Credit Manager

DECEMBER 6, 2022

Even worse, the company’s stock price was depressed because of the company’s high Days Sales Outstanding (DSO) , a common measure of AR management effectiveness. As you can see, there was a huge increase in the stock price commensurate with the reduction in DSO. You can find out more about AR portfolio monitoring here.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Emagia

APRIL 20, 2025

Lack of Real-Time Visibility: Finance teams struggle to get a consolidated, real-time AR aging report or DSO trends across brands. Data Privacy Regulations: Handling of sensitive client payment information must comply with PCI-DSS, GDPR, etc.

AR Aging 40

AR Aging Accounts Receivable (AR) DSO Credit and Collections 40

Your Virtual Credit Manager

JULY 25, 2023

Here are the KPIs you will need at a minimum: Days Sales Outstanding (DSO) - This metric tells you how fast you are converting your sales into cash. It is best understood in relation to Best Possible DSO (BPDSO) which is essentially what your DSO would be if every customer paid on time.

Best Possible DSO (BPDSO) 130

Best Possible DSO (BPDSO) DSO Cash Forecasting Credit and Collections 130

Gaviti

FEBRUARY 4, 2025

Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many traditional KPIs, like DSO, are not always a good indicator of collection success. Use data-driven insights to improve customer segmentation and prioritize high-risk accounts.

Average Days Delinquent 59

Average Days Delinquent Credit and Collections AR Metrics DSO 59

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Consequently, Days Sales Outstanding (DSO) increased by almost 50 percent with customer delinquency deteriorating so much that this supplier’s borrowing capacity under its asset-based credit facility was severely restricted. Poor credit approval and collection practices can single-handedly wreck DSO.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Gaviti

NOVEMBER 24, 2024

That means your accounts receivable team will want to do everything in its power to increase cash flow and reduce your DSO. Consider tracking A/R performance metrics that include best possible DSO , average days delinquent (ADD), collective effectiveness Index (CEI), and accounts receivable turnover ratio (ART).

Credit and Collections 52

Credit and Collections DSO Average Days Delinquent Collection Effectiveness Index 52

Your Virtual Credit Manager

JUNE 25, 2024

Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A rising DSO indicates that your collections are not matching the rate of new sales, and if that goes on for any length of time, your cash flow will not be able to support the volume of your current business operations.

Bad Debt 130

Bad Debt Credit and Collections Days Sales Outstanding DSO 130

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. monthly, quarterly or annually).

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Your Virtual Credit Manager

JULY 11, 2023

This article focuses on one widely used metric, Days Sales Outstanding (DSO) and the best ways to understand it. Subscribe now Understanding DSO DSO, (along with an Aging Analysis of the unpaid AR), is the most popular metric used to gauge AR management performance. The key with DSO is to pick one method and use it consistently.

Best Possible DSO (BPDSO) 100

Best Possible DSO (BPDSO) DSO AR Metrics Credit and Collections 100

Collenda

NOVEMBER 1, 2024

By adopting a holistic approach to credit risk that incorporates ESG criteria, banks can make informed lending decisions that contribute to sustainable development while safeguarding their portfolios. Optimising Accounts Receivable Management Effective accounts receivable management plays a vital role in a bank’s credit risk strategy.

Credit Risk 52

Credit Risk Days Sales Outstanding Credit and Collections DSO 52

Trade Credit & Liquidity Management

MAY 8, 2025

Here are some of the most common issues that finance teams encounter: Inaccurate or outdated contact information: Invoices go unpaid when they’re sent to the wrong place. Improved collections and credit management: Correct contact data and credit limits mean better follow-ups, fewer write-offs, and improved DSO.

Credit and Collections 52

Credit and Collections Revenue Recognition DSO Credit Management 52

Gaviti

JANUARY 24, 2023

Get valuable DSO comparison data with – Insights. The Insights section provides valuable information on DSO (days sales outstanding) and allows users to compare their collections team’s performance to similar companies. Let’s start with: Insights!

DSO 52

DSO Days Sales Outstanding Average Days Delinquent Dashboards 52

Your Virtual Credit Manager

FEBRUARY 27, 2024

Inefficient Cash Flow Management : Delays in credit approvals or ineffective collection efforts can lead to an increase in DSO (Days Sales Outstanding), impacting working capital and liquidity. Break Down Silos: Siloed information restricts a company’s ability to gain a comprehensive view of customer relationships and risks.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bad Debt Days Sales Outstanding Credit and Collections 130

Emagia

MARCH 3, 2025

Step 3: Setting Up Customer Accounts Ensure all customer details are documented accurately, including billing information and payment preferences. High Days Sales Outstanding (DSO) Regularly analyze DSO metrics and adjust credit policies accordingly. What is Days Sales Outstanding (DSO) and why is it important?

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Emagia

FEBRUARY 21, 2025

Reporting and Analytics Automation Automated reporting tools provide real-time insights into AR metrics, enabling businesses to monitor performance, identify trends, and make informed decisions. Gain Actionable Insights: Access real-time dashboards and reports to monitor performance and make informed decisions.

AR Automation 40

AR Automation Days Sales Outstanding DSO AR Metrics 40

Emagia

FEBRUARY 21, 2025

Centralize Financial Data Maintain all financial information in a unified system: Single Source of Truth: Use centralized databases to store all AR data, reducing discrepancies. By leveraging AI, Emagias solution helps businesses improve cash flow forecasting, enhance collections strategies, and reduce Days Sales Outstanding (DSO).

Days Sales Outstanding 40

Days Sales Outstanding DSO Bad Debt Credit and Collections 40

Gaviti

APRIL 18, 2023

Gaviti’s Solution to the Challenge The A/R manager, CFO, controller, and VP of finance are often tasked with managing a company’s cash flow, DSO , and ensuring the success of the collection process. Decrease DSO with automated tracking and management of customer payments.

DSO 97

DSO 97

Gaviti

DECEMBER 5, 2024

See your DSO drop within a few months. Offering a customer-facing payment portal makes paying you very smooth because the customer doesn’t need to know your bank account information and is less likely to make a mistake that will prevent you from reconciling the invoice later. Include all invoice information in the B2B payment reminder.

Credit and Collections 52

Credit and Collections Invoice to Cash Payment Portals DSO 52

Gaviti

JANUARY 5, 2025

A/R performance metrics that the software tracks should include best possible DSO, Collective Effectiveness Index (CEI), Average Days Delinquent (ADD), and Accounts Receivable Turnover Ratio (ART). Reduce Your DSO Days sales outstanding is one of the most important metrics for determining the effectiveness of collections efforts.

Average Days Delinquent 98

Average Days Delinquent DSO Credit and Collections Collection Effectiveness Index 98

Lockstep

JUNE 15, 2022

Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Be it lack of critical financial information, undue to time constraints, or higher priority projects, many companies, today, struggle to create formal credit policies. . Learn More.

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Emagia

FEBRUARY 21, 2025

This reduces the Days Sales Outstanding (DSO) and enhances the company’s cash position. Real-Time Cash Flow Monitoring AR automation provides real-time visibility into receivables and cash flow, enabling businesses to make informed financial decisions. This ensures that customer and company information remains confidential.

Accounts Receivable (AR) 40

Accounts Receivable (AR) AR Automation Days Sales Outstanding DSO 40

Your Virtual Credit Manager

JANUARY 3, 2023

The client had been forced to layoff seven of their 16 credit department employees and were desperate to find a way to keep up with collections during their peak season and meet the aggressive DSO goals upper management had set. During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

MARCH 14, 2023

Collection myths can be found at the very root of bad decisions as well as informing counter-productive activities. If you fail to be both strategic and comprehensive in your collection efforts cash flow will be diminished, DSO will rise, and the risk of bad debt losses will increase. Commercial collections is no different.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

Emagia

DECEMBER 4, 2024

Reduce Days Sales Outstanding (DSO). For more information on Emagia customer success stories, please visit www.emagia.com. Manufacturing Manufacturers often juggle extensive customer bases, complex credit risks, and high invoicing volumes. Emagia provides tools to: Automate credit management and collections.

Revenue Recognition 52

Revenue Recognition Credit and Collections Days Sales Outstanding Deductions 52

SAP Credit Management

DECEMBER 19, 2022

DWCのBW bridgeではBWのアーティファクトをDWC内で再利用することができます。DWCにはBWのモデリングが行われるABAPテナントが搭載され、独自のスペースが作成されます。アドバンストDSO(以下、ADSO)やInfoObjectなどのABAPテナントのテーブルはDWC内のBW bridgeスペースでリモートテーブルとして表示され、他のスペースに共有することで利用ができます。. メタデータ転送はオブジェクトタイプを変換します (TLOGO) 。 例えば、クラシックDSO(以下、DSO)とインフォキューブをADSOに、PSAをADSOに(データフローに依りますが、これは任意の場合と必須の場合があります)、インフォパッケージをDTPに変換します。.

DSO 134

DSO 134

Emagia

NOVEMBER 7, 2024

Calculating the Cash to Cash Conversion Cycle To calculate the C2C cycle, you can use the formula: Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) – Days Payable Outstanding (DPO). A shorter cycle indicates better efficiency, while a longer cycle suggests potential liquidity issues.

Days Sales Outstanding 40

Days Sales Outstanding DSO Dashboards Credit and Collections 40

Emagia

FEBRUARY 20, 2025

Better Reporting and Analytics : Automation solutions provide real-time insights into AR metrics, aiding in informed decision-making. AI-Powered Analytics Emagia leverages AI to provide real-time insights into key AR metrics, such as Days Sales Outstanding (DSO) , collections performance, and cash flow forecasting.

AR Automation 40

AR Automation AR Metrics Accounts Receivable (AR) Days Sales Outstanding 40