Tips To Reduce DSO and Maintain Cash Flow
                     Tips To Reduce DSO & 
Manage Account 
Receivables 
PRESENTED BY  TROVEWORKS
Discussion
• A Short Introduction
• Tips to Reduce DSO
• Contact Us
HIGHL IGHTS
What is DSO?
DSO, or Days Sales Outstanding 
measures the average number of days 
that it takes your customers to pay their 
invoices. A high number indicates slow 
payment, which can delay cash from 
hitting your account. Try automated 
accounts receivable solutions to manage 
cash flow and reduce your DSO. 
Tips To Reduce DSO
• Increase Visibility
Before you take any other steps, 
it’s important to have a full and 
complete picture of your 
receivables and payable. For DSO, 
make sure you have reporting 
practices in place that allow you to 
see which customers tend to pay 
late, trace any correlations that 
exist with your sales practices, and 
discover internal issues that might 
be causing delays.
2. Automate A/R Processes
Manual A/R processing is inefficient 
and costly. By implementing 
Receivables Automation, you can 
improve cash flow while reducing 
your operating costs and 
improving your overall customer 
experience. A cloud-based 
payment solution like Troveworks 
can help you invoice your 
customers instantly and make your 
collections process easier
3. Offer More Payment Options
Another way you can quickly 
reduce DSO is to make it easier for 
customers to pay you by offering 
multiple payment methods. This 
provides greater flexibility for 
customers while helping shift away 
from less convenient options like 
paper checks. Accepting 
alternative payment options can 
help your organization stand out in 
an increasingly convenience-driven 
world.
4. Adjust Your Payment Terms
A good rule of thumb is that your 
DSO should be within 20% of your 
stated payment terms. If you’re 
within the right range and find that 
your DSO is too long you should 
consider gradually reducing your 
payment period. If you find that the 
percentage is significantly higher 
than it should be it’s worth offering 
incentives and/or charging penalties 
to motivate a closer alignment.
5. Personalized Collection Plans
Another way to cut your DSO is to 
get strategic about how you follow 
up with customers about delayed 
payments. Using intelligent 
automation features, you can use 
payment software to stay ahead of 
the monthly collections process. 
This way customers can apply a 
greater focus on getting delinquent 
accounts back on track, while 
actually decreasing the amount of 
time and effort required to make it 
happen. 
6. Focus on Customer Credit Issues
The goal is to identify risky 
customers, both current and new, and 
decide what level of credit risk your 
organization is willing to face. You 
should run thorough credit checks on 
new customers, and consider 
rejecting them if their established 
credit record is worse than your 
predetermined threshold. If your 
services are in demand, it’s worth 
eliminating bad players so that you 
can focus on customers that help 
keep your DSO down.
Contact Information
WEBSITE ADDRESS
https://troveworks.com
EMAIL  ADDRESS
[email protected]
PHONE NUMBER
(669) 244 4160