The Essential Guide to Days Sales Outstanding (DSO)

How to get ahead of major cash flow problems for your business by effectively monitoring DSO.

Essential guide for days sales outstanding

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.

 

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