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Credit Sales

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

APRIL 3, 2024

Best Possible DSO Formula The formula for Best Possible DSO is: (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period 7 Strategies to Reduce DSO Since DSO reduction is such an important element of your accounting operations, many companies turn to tools such as DSO reduction software to assist them.

DSO

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index

7 Strategies to Reduce DSO and Improve Cash Flow

The Esker Blog

JANUARY 3, 2023

A high DSO value means it takes a company a lot longer to collect and could lead to cash flow problems due to the longer time between the sale and the time the payment is received. DSO is calculated using the following formula: DSO = ( AR balance / Credit sales) x Number of days in that period.

DSO

DSO Accounts Receivable (AR) Credit and Collections Days Sales Outstanding

7 Strategies to Reduce DSO and Enhance Cash Flow

7 Strategies to Reduce DSO and Improve Cash Flow

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