As mid-sized businesses often rely on cash for operational needs, driving revenue growth via sales and attracting investment opportunities, DSO could be a key metric to track cash inflow in order to fund and channel multiple initiatives. It refers to the average number of days for a business to collect payment from a credit sale, providing an overview of how fast your cash conversion cycle is.
This excel-based DSO calculator helps you assess your current DSO and provides additional insights about the Best Possible Days Sales Outstanding based on the industry-level benchmarking. It also showcases potential savings that could be achieved with the reduction of Days Sales Outstanding.
What’s Inside?
- Template for monthly/annual calculation of DSO
- Industry-based average and Best Possible DSO(BSO) insights
- Effective trend report suggesting the Collections Effectiveness in A/R
- Average savings calculation based on DSO reduction
- 13 tried and tested tips to reduce DSO
Calculate your DSO using this excel template in 4 simple steps:
- Download the excel template
- Fill out the basic information required within 5 mins
- Check out the results
- Improve DSO with strategies implemented by Fortune 500 countries
Visibility into the effectiveness of A/R (accounts receivables) is understandably one of the top priorities of CFOs across mid-sized companies today. This excel-based DSO calculator not only makes the calculation easy but provides additional industry-level benchmarking information to help finance leaders assess their process and effectiveness and formulate an action plan to reduce DSO and improve cash flow.
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