Your Virtual Credit Manager
JULY 11, 2023
Accounts Receivable (AR) is among the three largest assets on most companies’ books — inventory along with plant and equipment are the other two. This article focuses on one widely used metric, Days Sales Outstanding (DSO) and the best ways to understand it. quarter, year-to-date, 12 months, etc.)
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.
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Gaviti
JANUARY 2, 2024
Here’s the formula for Average Days Delinquent: ADD = Days Sales Outstanding (DSO) – Best Possible Days Sales Outstanding (BPDSO) Note the role of the DSO metric in this calculation. If you need help with this, check out how to calculate DSO.
Gaviti
MARCH 4, 2024
Other common names include “days sales in accounts receivable,” “average receivables collection period,” or “ days sales outstanding (DSO).” A/R balance ÷ total net sales) x 365 = average collection period Example: ($50,000 ÷ $800,000) x 365 = 22.8 Contact us and book a demo today.
Gaviti
JANUARY 16, 2023
Take a page from the marketing team’s book. By applying these same principles to your collections workflows, you can improve your cash flow and reduce your Days Sales Outstanding (DSO). Send your first dunning email before the payment due date to reduce your DSO. .
Gaviti
MARCH 3, 2024
This helps to speed up the entire invoice-to-cash cycle, reducing Days Sales Outstanding (DSO) and improving cash flow. Download the Ebook How Gaviti Automates the Account Receivables Process By automating the A/R process with Gaviti, businesses have been able to reduce their DSO by 30% – 50% in less than 6 months.
Gaviti
MAY 9, 2023
A/R analytics aggregate information from multiple sources and visualize key business indicators such as customer payment trends or days sales outstanding. Organizations focus heavily on the days sales outstanding, but additional options exist. Book a demo to get started.
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