The love/hate relationship between DSO and the collections professional billtrust.comTable of Contents Introduction 3 Defining DSO 4 Average DSO by indsutry 4 Introducing the love/hate relationship: What DSO is not 5 How to calculate DSO 6Days Sales Outstanding (DSO) has an impact that can be felt well beyond the finance department, as it reflects the size of a company’s outstanding accounts receivable (AR) – one of the largest assets on a balance sheet. What we’ve learned from speaking to our customers is that credit and collections managers sometimes have a love/hate relationship with DSO. Why is that? In business, an increase in something is generally seen as a positive thing, such as revenue or efficiency. But in terms of DSO, an increase is often negative because i

Join for free to read