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Top 10 Strategies for Reducing Days Sales Outstanding (DSO)

Your Virtual Credit Manager

The primary way most companies measure AR performance involves looking at the Days Sales Outstanding (DSO) metric. Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Your Virtual Credit Manager is a reader-supported publication.

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What is Order to Cash Automation Software?

Emagia

The Order to Cash (O2C) process is the backbone of every business that sells products or services. It encompasses all the steps involved in fulfilling customer orders and collecting payments. Enter Order to Cash Automation Software , a solution designed to streamline and optimize the O2C cycle.

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Days sales outstanding: effectively managing DSO improves cash flow

TreviPay

An important player in effective cash flow management is days sales outstanding (DSO). DSO is the average number of days a company takes to collect a customer’s payment for a sale. Part of the cash conversion cycle, DSO is also sometimes referred to as “days receivables” or “cash collection period.”.

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Credit Cards – Reducing the Cost of Acceptance – You hold the keys to success

Credit Research Foundation

In essence, the customer has payment options that, coupled with today’s digital platforms, provide a seamless opportunity in the order-to-cash process. In many cases the customers will choose the option that provides them with the greatest value, and when offered, gives the supplier a competitive advantage against its competition.

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How CFOs Can Benefit from Emagia Autonomous Finance Platform for Accounts Receivable Automation

Emagia

Emagia is a leading provider of Autonomous Finance Solutions, designed to revolutionize and modernize the way enterprise finance teams operate, particularly in the Order-to-Cash (O2C) cycle. Enables proactive decision-making with AI-driven cash flow forecasting and actionable insights.

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How Healthy Is Your Accounts Receivable?

Your Virtual Credit Manager

That certainly holds true for business processes, including the management of your Accounts Receivable (AR) and the part it plays in the order-to-cash process. If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses.

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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent. The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions.