Days Sales Outstanding, or DSO for short, is one of the most useful barometers for understanding a business’s financial health. If you’re new to DSO, read on to understand how it works and what it means for your business. And if you’re already a pro at calculating DSO (you are, right?), consider this a helpful refresher.
Invoice Promptly, Get Paid Promptly
Have you ever sat down at a restaurant and had the waiter deliver exactly what you wanted without you even asking for it? The odds of this magical event happening are approximately the same odds as you getting paid without sending out an invoice. So what are you waiting for? The single biggest lever you have in getting paid quickly is invoicing quickly.
More Options Means More (and Faster) Payments
Remember that time when you spotted a great little out-of-the-way restaurant and were really excited until you saw the "cash only" sign in the window and realized your wallet was a little low? Anything that causes friction or causes a customer to push off payment processing to another day is to be avoided diligently. What can you do to avoid this behavior?
Dissecting the Reasons Customers Don’t Pay - Sandi Smith Leyva of Accountant's Accelerator
Everything You Know About Payment Terms Is Wrong
The payment terms you’re using are probably “Due on receipt” or “Due in 30 days.” If those aren’t your terms, congratulations! You’re in the minority. However, most people adopted these terms long ago and never looked back. They are by far the most popular. Yet when it comes right down to it, neither one is very effective.
Invoice Like a Genius: 4 More Tweaks to Try
How to Get Your Customers in the Habit of Paying on Time
The fact is, humans and animals are a lot alike. We’re creatures of habit. We do things the same way time and time again—until we learn otherwise. We’ve all been trained in various ways, and for you to get the most out of your invoicing and shorten your cash conversion cycle, you’re going to have to train your customers.