What information does the DSO provide?
It communicates to you the number of days of turnover that you have outside your bank account: your sales and therefore your invoices not yet paid by your customers translated into number of days. It is the flagship performance indicator of credit management.
But then how to calculate it?
The most common method is called the so-called exhaustion method. What an absolute motivation to work on the indicator, the flagship ratio of the receivables, speaking of exhaustion.
Let's forget these awkward words to fully understand the mechanism: the DSO calculation method by depletion
or "Count back"
consists of subtracting from the financial outstanding, until it is depleted, the turnover including tax for each month and adding the number of days of each of the corresponding months.
Read the full tutorial about that topic: How to calculate the DSO?
Can I have a DSO in real time, by customer, by branch, by BU, by entity…?
Yes and effortlessly to calculate it !
In order to focus your energy only on improving it.
My DSO Manager
brings you online, in real time, your DSO at the expected level with the detail per customer to give you the best readability of an indicator whose quality of management ensures your cash performance.
My DSO Manager
allows you to go back in time over a period of one year with a monthly or weekly rhythm to better understand your variations and your evolution.
Don't wait any longer to make D
utstanding your performance indicator!