Your Virtual Credit Manager
FEBRUARY 20, 2024
Learn More About YVCM Consulting The Limitations of DSO Days Sales Outstanding (DSO) is widely used to assess the efficiency of a company's AR management. DSO formulas looks at sales volume during a period of time set against the ending AR balance to provide a measure of receivables turnover.
Your Virtual Credit Manager
MAY 14, 2024
Monthly: The Three Weekly Metrics listed above Days Sales Outstanding (DSO) – This metric expresses the level of AR as the number of days of sales that comprise your AR total. In the real world, with customers making late payments, your DSO will be higher than your stated credit terms.
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Your Virtual Credit Manager
FEBRUARY 27, 2024
Here’s a rundown of the issues that arise from misalignment and a lack of risk awareness: Delays Processing Orders : If credit approvals are slow or inconsistent, sales orders may be held up, resulting in frustrated customers, sales reps, and potentially lost revenue.
Your Virtual Credit Manager
APRIL 2, 2024
Optimizing Cash Flow: By assigning more aggressive collection strategies to higher-risk accounts, you can improve cash flow by reducing the average days sales outstanding (DSO) and accelerating the collection of outstanding receivables.
Your Virtual Credit Manager
DECEMBER 6, 2022
The company ended up writing off millions of dollars in bad debt. 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. The increase in cash on hand was equivalent to four months of sales.
Your Virtual Credit Manager
JANUARY 17, 2023
The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions. 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.
Lockstep
JUNE 15, 2022
Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . The credit plan will help your organization reduce bad debt and write-offs. Accounts receivable automation elevates your payments strategy and reduces DSO by 30%.
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