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Days Sales Outstanding (DSO): A Guide

TreviPay

Firstly, there are two main variables to consider: Ending total receivables: Your accounts receivable balance Total credit sales: The value of your outstanding invoices (usually given in dollars, pounds, euros, etc.) And annually enables comparisons with other years.

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Dales Sales Outstanding (DSO): A Guide

TreviPay

Firstly, there are two main variables to consider: Ending total receivables: Your accounts receivable balance Total credit sales: The value of your outstanding invoices (usually given in dollars, pounds, euros, etc.) And annually enables comparisons with other years.

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Difference Between Standard DSO vs Best Possible DSO

Gaviti

DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? This generally manifests as monthly, quarterly or annually. Because it can be calculated and recalculated regularly, it shows a detailed picture of progress over time.

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Customer Stops Paying; Now What?

Your Virtual Credit Manager

It involves intensive management of the customer’s total receivable balance supported by a substantial reduction in their credit limit. Such risk-based pricing is facilitated by grouping all high credit risk accounts into a classification that gets charged top dollar for your goods and services.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

(DSO alone may account for receivables that don’t directly correlate with credit sales figures in the measured time period, reducing its accuracy when compared with shorter-term CEI calculations.)

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

This number is displayed as a percentage: Collection Effectiveness Index = (Beginning Receivables + Monthly Credit Sales – Ending Total Receivables) / (Beginning Receivables + Monthly Credit Sales – Ending Current Receivables) x 100 3.

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AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

Eventually, the amount of AR over 60 days past due increased to over 50 percent of total receivables. Their sales volume was growing, but they had a collections team that unfortunately lacked focus, a strategy, standard process, and metrics.