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
Tag: reducing DSO
Understanding DSO and Its Impact on Accounts Receivable Collections
Daily Sales Outstanding (DSO) is an important financial metric that shows how long it takes for a company to collect payments after making a sale. It measures the average number of days it takes for invoices to be paid. A lower DSO means faster collections, while a higher DSO indicates delayed payments. For businesses managing… Continue reading Understanding DSO and Its Impact on Accounts Receivable Collections
