
Purpose and benefitsDays sales outstanding (DSO) can be considered as a tool for financial troubleshooters. Knowing how long it takes a company to turn accounts receivable into cash is an important financial indicator. It indicates the efficiency of the company’s internal collection, suggests how well a company’s customers are accepting its credit terms (net 30 days, for example), and is a figure that is routinely compared with industry averages. |
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MethodManagement checklist, answers to FAQs, common traps, and suggested action plans. |
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