We made a nifty little calculator that would help business check the DSO value for their business
Try it here — http://www.payorcrm.com/dsocalc/
To use the calculator enter the following details
Total yearly gross sales : This is the total sales in the last one year for your business
Total no of working days : This field should contain the total no of working days in the last one year. Usually this would be around 260 days
Average Accounts Receivable Amount : This is the average total unpaid amount at any point during the last year. For simplicity you can take the total unpaid amount as of today in your accounting software .
What is a good DSO value ?
If the usual invoice payment term is “30 days “ , The expectation is that the DSO value for your business should be around 30 days.Any value above 45 days is considered usually high DSO. It basically means that your customers are using you as a short term loan provider
What if the DSO value for my business is very high ?
Automate your collections process by sending automated reminders with easy and fast payment options.Allow your customers to automatically pay invoices raised by you.
Send us a mail on email@example.com to understand how you can use payorCRM app to get paid faster :)
Try the app by visiting app.payorcm.com
Originally published at PayorCRM.