article thumbnail

Difference Between Standard DSO vs Best Possible DSO

Gaviti

Most business managers use the standard DSO when running the calculations, but it is also possible to calculate the best DSO. What Is ‘Standard’ DSO? It includes both the current receivables and overdue invoices. Most often, managers use a timed cycle to calculate DSO. Get started with a free demo.

DSO 52
article thumbnail

AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

Email us to learn how the experts at Your Virtual Credit Manager can help you clean up your AR Ledger and increase cash flow by improving your Collection Process. During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half. This included a 100 percent increase in past due collected.

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