DSO Meaning Let’s start by defining what DSO means. Days Sales Outstanding (DSO) is the average number of days taken by a firm to collect payment from their customers after the completion of a sale. if I send an invoice of January 1st with a payment due date of January 31st and the customer ends…
Most businesses sell to their customers on credit. The items or services ordered by customers are delivered before any payment is made. Accounting-wise, we use an account called “Accounts Receivable” to track that a payment is due by the customer. Technically for every customer, we track the invoices that are sent with a set of…
Dear Reader, Nick and I are both Product and Marketing Executives and we have never done this before: Build the best software with our heart, Mind and Money and giving it all for free. But Why? Collection / Account Receivables has been an afterthought for too long. For the last 30 years, the ERPs and…
What a year, we will all remember 2020! It has also very tough for most of our customers. The food and Retail industries have the most negative impacts Our customers in the Food and Retail industries are in the middle of a perfect storm. In some cases, they have lost 50 to 70% of their…
If you regularly invoice clients, you have likely had the experience of chasing down money. It’s time-consuming; frustrating and repetitive. The customers know they have to pay, they are just playing the clock and delaying the inevitable. They count on you not doing your job and “forgetting” that they owe you money. what is the…
Accounts Receivable Automation describes software tools that help send automatically invoice payment reminders. It uses customizable workflows and emails. Thousands of reminders for past due invoices can be sent at a click of a button. Accounts Receivable Automation frees up time for AR teams to focus on higher-value work. It helps mitigate bad debt by…
Writing a collection letter to a customer can be scary. How to ask for money owed without coming off as rude and annoying? Direct and to the point: Customers don’t read long emails; so the amount and due date should be in bold and in the first sentence of your collection letter. I usually recommend…
Most businesses across the globe are automating their various business operations to save time and improve the quality of work. They are investing in the AR automation solutions to speed up the various financial operations of their business. This help in reducing DSO, improve payment collections, better invoice management and to maintain a good relationship…
A dunning letter is a reminder sent to the customer stating that an invoice was sent and it is past due. Dunning letters should always include references to the services rendered or product delivered. It should also include a copy of the invoice past due and multiple payment options. We recommend adding a phone number…
What is invoice factoring? When a company uses Invoice factoring, it sells some or all of your company’s outstanding invoices to a third party. For instance, if you have 100 invoices adding up to $44,000 in Accounts receivable, you can sell the invoices rights to a 3rd party for a percentage of the value of…