Running a smooth and efficient order-to-cash (O2C) process is crucial for any service provider handling transactions on behalf of a client. In industries like pharmaceuticals and medtech, where compliance, accuracy, and timeliness are non-negotiable, ensuring that everything runs seamlessly is even more critical. That’s where the Monthly Business Review (MBR) becomes an essential tool. It… Continue reading The Power of Monthly Business Reviews in Order-to-Cash Services
Tag: Days Sales Outstanding
Optimizing Cash Flow: The Impact of Setting the Right Payment Terms on DSO
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
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
