The Essential Guide to Days Sales Outstanding (DSO)
How to get ahead of major cash flow problems for your business by effectively monitoring DSO.
DID YOU KNOW:
- A high DSO is about your customers. If customers routinely pay late, causing a high DSO, the business may not be properly evaluating the credit risk of its customers.
- A high DSO could also signal a lack of attention to AR or collections.
- A significantly lower than average DSO might mean a company is too strict with its credit policy, which could limit its growth potential in terms of pricing limits and customer volume.
- A sudden rise in DSO can drastically disrupt a business’ cash flow and operations.
Get ahead of major cash flow problems for your business by monitoring your DSO on a monthly and quarterly basis. As soon as DSO rises above the standard deviation, take action. In this complimentary white paper, we will show you how.
We'll also cover the basics:
- What is days sales outstanding (DSO)?
- Why does it matter?
- How do you calculate it?
Get started by downloading the white paper, and be sure to contact us if you'd like to learn more.