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Days Sales Outstanding (DSO): A Guide

TreviPay

Days sales outstanding (DSO) is another good example. What is days sales outstanding (DSO)? Days sales outstanding (DSO) (also known as days receivables or cash collection period ) is a measure used to help determine the state of businesses’ collection process.

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Days sales outstanding: effectively managing DSO improves cash flow

TreviPay

An important player in effective cash flow management is days sales outstanding (DSO). DSO is the average number of days a company takes to collect a customer’s payment for a sale. Part of the cash conversion cycle, DSO is also sometimes referred to as “days receivables” or “cash collection period.”.

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Moving Beyond DSO

Your Virtual Credit Manager

Financial Health Priorities: Organizations may have specific financial health priorities such as improving liquidity, managing working capital, or reducing credit risk. The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. Where do you need to improve?

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How To Calculate Accounts Receivable Collection Period

Gaviti

Once an invoice hits accounts receivable (A/R), it enters what’s called the average collection period. Other common names include “days sales in accounts receivable,” “average receivables collection period,” or “ days sales outstanding (DSO).” What Is an Accounts Receivable Average Collection Period?

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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

If conditions are satisfactory and all your credit and collection assignments have been completed, you can then address the many other tasks and challenges requiring your attention. Do you need help collecting past due receivables or understanding your customer portfolio risks? Why Are Metrics Needed if You Have an AR Ledger?

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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. However, days sales outstanding are subject to a range of factors and targets should always be based on the wider context of the business and industry.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO. It’s a comparison of how much you were owed at the beginning of the period versus how much you actually collected during that same period.