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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).

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

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. But note that CEI is more accurate when measuring collections in shorter periods.

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

Gaviti

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. Having customers pay on time is one of the simplest ways to strengthen your cash flow.

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

Gaviti

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. Having customers pay on time is one of the simplest ways to strengthen your cash flow.

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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.

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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.

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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. Collections analytics.