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Your DSO report based on US GAAP calendar and formula

The US GAAP 4-4-5 calendar is a standardized accounting calendar commonly used in the United States.

It divides the year into four quarters, each containing 13 weeks. We then divide these 13-week quarters into four-week periods. The only exception is for the final quarter which contains a 5-week period. This results in a typical 52 weeks for a year.

According to the US GAAP 4-4-5 calendar, the accounting cycle ends on a Sunday. However, with a regular calendar, it will most likely end on a Saturday. This difference can impact revenue recognition and financial reporting. This is even more true when companies rely heavily on some days of the week for its operations or revenue streams.

Ending the accounting cycle on a Sunday, using the US GAAP 4-4-5 calendar may make companies "off cycle" by a full week of revenue. This causes a great difference compared to companies using the other calendar. This misalignment in accounting periods could lead to discrepancies in financial reporting and their analysis.

This departure from the conventional calendar necessitates careful consideration to ensure accurate financial reporting, revenue recognition, and payment scheduling. Even more when American credit managers rely heavily on precise accounting practices.

Adapting My DSO Manager to accommodate the US GAAP 4-4-5 system brought some challenges. However, our team has successfully navigated this terrain. They ensured seamless alignment with the unique accounting principles of the 4-4-5 calendar for the DSO calculation.

To enable this development, we prioritized date recognition, a fundamental aspect of financial management. We successfully configured My DSO Manager to identify the end of the accounting period as Sunday. The plateform then aligns with the 4-4-5 calendar, thus preventing discrepancies in period identification and ensuring seamless financial reporting.

Global DSO report based on US GAAP calendar and associated DSO formula in My DSO Manager :

View of the Global DSO report based on the US GAAP calendar in My DSO Manager

We calculate the US GAAP DSO in real time on an unlimited number of perimeters. These can be Corporate level, by legal entity, by customer, by group of customers, by business lines, etc.

The dedication of My DSO Manager to enhance financial management extends beyond integrating the US GAAP 4-4-5 calendar. Regarding DSO reporting and analysis, our software delivers actionable insights aligned precisely with the US GAAP 4-4-5 calendar. This alignment empowers credit managers to accurately evaluate credit risk, monitor collections, and resolving discrepancies in payment due dates or billing cycles.

Through this integration, our software ensures data synchronization while adeptly accommodating differences in calendar systems. It preserves the integrity of financial records and assess the economic health of the organization with confidence.