Tips and Tricks to Reduce Your DSO

DSO or Days Sales Outstanding is one of the best company wide metric to measure your overall financial performance.  It is calculated as the {Total Account Receivable}/{Total Credit sales in accounting period} X {days in accounting period}.  The unit of measure is in days and best in class companies have DSO as low as 30 to 35 days (see article in CFO.com)

The #1 goal for most organizations is to reduce DSO and collect payment faster.

ERPs and billing solutions are great at generating invoices but they are designed with the assumptions that customers always pay their invoices on-time. Most business owners have now started to invest in automated receivable solutions to manage the collection process during Covid 19.

Manually collecting payment for your invoices is no easy work!

If you are like me, you end up downloading all the unpaid invoices in a spreadsheet, send emails one by one to all the customers, and manually check who i sent emails to in my spreadsheet and start anew the next day.

It is easier to stay on top of your DSO with an automated collection workflow

To reduce DSO, you need a workflow engine for automating accounts receivables. To make it easier you can use a free collection management software. It starts with an initial reminder email sent 10 days before the invoices are due to give the customers an opportunity to provide feedback, it then goes in auto-pilot using your own escalating template messages, Leaving you to handle the exceptions, knowing that 95% of the work is done automatically. 

You too can reduce your DSO by 35 to 50% 

Our customers are telling us that they have seen DSO reduced by 35% to 50% compared to using their Zuora, Netsuite, Intaact or ar integration for quickBooks. That’s huge and this is why we call our customers “collection heroes”! They do an incredible job bringing cash early in the business. But they do more! They make cash collection predictable. Troveworks track all payment history and can help you predict when you will collect the invoices before you send them! Imagine that.

With our out of the box integration with Zuora, Netsuite and other billing solutions and the ability to leverage email templates, enter notes, reminders, create dunning batches, you too can reduce your DSO by 35% or more. Get in contact with Troveworks team today!