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7 Strategies to Reduce DSO and Improve Cash Flow

The Esker Blog

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. Check out Esker’s payment portal.

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Top 6 Accounts Receivable Software Providers with a Payment Portal

Gaviti

If you’ve decided that you want to move ahead with accounts receivable software, you might want to consider looking into an A/R software provider with a client payment portal. It’ll help you provide your customers the best payment experience possible while saving both costs, time and reducing errors.

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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. 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).

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Receivables Turnover vs. Days Sales Outstanding (DSO): What’s the Difference?

Gaviti

Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO). DSO calculation requires input of your ending accounts receivable for a given time period against the credit sales during the same timeframe.

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

The most common is DSO. Automate collections actions with reminders, internal or external escalations based on predefined criteria such as payment due date or history, credit terms or aging of the invoice. Automatically match customer invoices against payments with 100% accuracy using Gaviti’s payment gateway.

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5 Accounts Receivable Collection Mistakes You Should Avoid

Gaviti

Ensuring all necessary forms and data are included at the start helps streamline the payment process. Advanced A/R tools often provide a customer payment portal that centralizes necessary payment details, making it easier for customers to complete payments on time. Customer invoice distribution.

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

Emagia

Real-Time Insights and Analytics: Provides real-time dashboards and predictive analytics for cash flow, DSO, customer payment behavior, and credit risk. Improved Working Capital Efficiency: Accelerates cash conversion efficiency, optimizes cash flow management by accelerating cash applications , collections and reducing payment delays.

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