Day Sales Outstanding (DSO)

It has always been important for business to keep tight control of days sales outstanding, DSO. According to Payment and Collection News, arger company traditionally carry a DSO of about 45 days. A minority of business will show a DSO of less than 30 days. The post office is slow in getting invoices to customers and checks to the biller. By replacing regular mail with email delivery and problem resolution times have decreased substantially.

By implementing  these methods many businesses have been able to cut their DSO extensively. The find that over 55% their customers are remitting the payment of an emailed bill within 7 days, over 75% in 15 days and more than 95% in 30 days.