Tag: Customer Payment Behavior

MBR and QBR: Understanding Their Role in Business Success

Posted in Career and Ambitions, Career Growth, Finance2 Comments

In the business world, companies constantly strive to improve performance, maintain client relationships, and ensure strategic growth. Two critical processes that help achieve these goals are the Monthly Business Review (MBR) and the Quarterly Business Review (QBR). These structured review meetings provide insights into business operations, help track progress, and foster stronger relationships between internal… Continue reading MBR and QBR: Understanding Their Role in Business Success

Optimizing Cash Flow: The Impact of Setting the Right Payment Terms on DSO

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Cash flow is the heartbeat of any business. Without enough cash coming in at the right time, even a profitable company can run into trouble. That’s why managing how quickly customers pay—also known as Days Sales Outstanding, or DSO—is so important. DSO tells you how many days, on average, it takes to collect payment after… Continue reading Optimizing Cash Flow: The Impact of Setting the Right Payment Terms on DSO

Factors Influencing Longer DSO

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Several factors can contribute to longer Days Sales Outstanding (DSO), indicating delayed payment collection for a business. Here are the key factors: 1. Extended Payment Terms: Offering customers longer payment terms can naturally lead to a prolonged collection period. While this may be a strategic decision, it also increases the DSO. 2. Inefficient Invoicing: Delays… Continue reading Factors Influencing Longer DSO