Tips To Reduce DSO & Manage Account

Receivables

PRESENTED BY TROVEWORKS

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• A Short Introduction• Tips to Reduce DSO• Contact Us

What is DSO?

DSO, or Days Sales Outstanding measures the

average number of days that it takes your

customers to pay their invoices. A high number

indicates slow payment, which can delay cash

from hitting your account. Try automated

accounts receivable solutions to manage cash

flow and reduce your DSO.

• Increase Visibility

Before you take any other steps, it’s

important to have a full and complete

picture of your receivables and payable.

For DSO, make sure you have reporting

practices in place that allow you to see

which customers tend to pay late, trace

any correlations that exist with your

sales practices, and discover internal

issues that might be causing delays.

Tips To Reduce DSO

2. Automate A/R Processes

Manual A/R processing is inefficient

and costly. By implementing

Receivables Automation, you can

improve cash flow while reducing your

operating costs and improving your

overall customer experience. A cloud-

based payment solution like

Troveworks can help you invoice your

customers instantly and make your

collections process easier

3. Offer More Payment Options

Another way you can quickly reduce

DSO is to make it easier for customers

to pay you by offering multiple payment

methods. This provides greater

flexibility for customers while helping

shift away from less convenient options

like paper checks. Accepting alternative

payment options can help your

organization stand out in an

increasingly convenience-driven world.

A good rule of thumb is that your DSO

should be within 20% of your stated

payment terms. If you’re within the right

range and find that your DSO is too long

you should consider gradually reducing

your payment period. If you find that the

percentage is significantly higher than it

should be it’s worth offering incentives

and/or charging penalties to motivate a

closer alignment.

4. Adjust Your Payment Terms

Another way to cut your DSO is to get

strategic about how you follow up with

customers about delayed payments.

Using intelligent automation features,

you can use payment software to stay

ahead of the monthly collections

process. This way customers can apply a

greater focus on getting delinquent

accounts back on track, while actually

decreasing the amount of time and effort

required to make it happen.

5. Personalized Collection Plans

The goal is to identify risky customers,

both current and new, and decide what

level of credit risk your organization is

willing to face. You should run thorough

credit checks on new customers, and

consider rejecting them if their established

credit record is worse than your

predetermined threshold. If your services

are in demand, it’s worth eliminating bad

players so that you can focus on

customers that help keep your DSO down.

6. Focus on Customer Credit Issues

Contact Information

WEBSITE ADDRESShttps://troveworks.com

EMAIL ADDRESSsales@troveworks.com

PHONE NUMBER(669) 244 4160