It’s important to keep your accounts receivable to a minimum. But to get a handle on your accounts receivable, you must first determine how long it takes to collect on an account past due. Days sales outstanding is a metric that can help you understand how long it takes clients and customers to pay you.
Use these links to get a specific answer, or keep reading to learn more about days sales outstanding:
- What is days sales outstanding (DSO)?
- Why is days sales outstanding important?
- Components of the DSO formula
- How to calculate DSO with the days sales outstanding formula
- Days sales outstanding calculation example
- How do days sales outstanding affect business finances?
- What is a good DSO ratio?
- Why would days sales in receivables increase?
- How to reduce and improve DSO