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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

Understanding Days Sales Outstanding Days Sales Outstanding, or DSO , is the average number of days it takes a company to collect revenue from an invoice. Accounting operations managers use DSO to calculate the general ability of a company to collect invoices on time for a specific period (e.g. Automate the collections process.

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

Are you offering enough or too much credit to customers? Are you able to collect invoices on all of the revenue your business generates? How much cash is the company gaining or losing? Are we offering the right amount of credit to customers based on their creditworthiness? How well are the existing terms working?

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The Importance of the Accounts Receivable Aging Report

Gaviti

As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (AR) collections aging report. This report is a valuable tactic to stay on top of cash flow and improve short-term collections forecasting. It also identifies cash flow issues before they become problems.