Definition
DSO measures the average time a company takes to collect payment after a sale, indicating cash flow efficiency.
Related Services
Accounts receivable management, invoicing solutions, and cash flow optimization help businesses reduce DSO.
Problem and Application
High DSO can cause cash flow issues. Companies must implement effective billing and collection strategies.
Conclusion
Lowering DSO improves cash flow and financial stability. Businesses should streamline collections and enforce payment terms.
