article thumbnail

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).

DSO 52
article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

With Gaviti’s A/R invoice-to-cash management solution , customers have successfully reduced their average days delinquent (ADD) by 34%, decreasing their late receivables by 9% year over year (YoY).

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

With Gaviti’s A/R invoice-to-cash management solution , customers have successfully reduced their average days delinquent (ADD) by 34%, decreasing their late receivables by 9% year over year (YoY).

article thumbnail

Collections Dashboard: Why Is It an Essential Growth Tool?

Gaviti

This metric measures how long a company takes to collect on its invoices. 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. Collection Effectiveness Index. Credit Manager. Days Sales Outstanding.

article thumbnail

How Healthy Is Your Accounts Receivable?

Your Virtual Credit Manager

Subscribe now Days Sales Outstanding (DSO) From a credit perspective, DSO isn’t our favorite metric, but it is a standard used by accounting and finance professionals to reflect receivables turnover. The problem with DSO is that AR performance can be improving at the same time DSO is rising.

DSO 130
article thumbnail

Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind. Collections is always playing a bit of catch up to sales.

DSO 130
article thumbnail

Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

KPIs for Accounts Receivables Collections Analysis When reporting on an accounts receivable analysis to the A/R team or other departments within your organization, there are different key performance indicators you can use to measure the health of your accounts receivable. The most common is DSO. Credit management and monitoring.