Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) is a metric used to measure how long it takes for a business to collect payment after a sale. A lower DSO indicates quicker collection times and better cash flow management. Businesses rely on DSO to evaluate the efficiency of their AR processes and to identify areas for improvement.
By optimizing the invoicing and collections process, businesses can reduce DSO and improve liquidity. AI-powered AR systems track DSO in real-time, helping businesses identify trends and make data-driven decisions. Reducing DSO is essential for maintaining a healthy cash flow and ensuring that businesses can meet their financial obligations on time. Automating AR processes helps businesses reduce DSO and improve overall financial health.