article thumbnail

Increase the Liquidity of Your Receivables Portfolio

Your Virtual Credit Manager

Here are the KPIs you will need at a minimum: Days Sales Outstanding (DSO) - This metric tells you how fast you are converting your sales into cash. It is best understood in relation to Best Possible DSO (BPDSO) which is essentially what your DSO would be if every customer paid on time.

article thumbnail

How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Discrepancies between cash flow and DSO. What Are the Benefits of Dynamic Cash Flow Forecasting? By adopting a dynamic approach to cash flow management, CFOs can better optimize their financial operations for maximum profitability. How Can CFOs Improve Their Dynamic Cash Flow Management Results?

article thumbnail

Collections Dashboard: Why Is It an Essential Growth Tool?

Gaviti

Days Sales Outstanding. A low DSO means customers are paying their invoices quickly, and a high DSO indicates that customers take a longer time to pay their invoices. Cash Forecast Accuracy. Cash forecast accuracy measures how well a company estimates its future cash position.