DSO (Days Sales Outstanding) is one of the most important numbers to track for any company. If you are a small company it is arguably the most important one to manage cash flow
And it is a notoriously fickle metric, most people track it at month end, and yet their main sales receipts come in after... leading to a rather alarming result. DSO or debtor days as it is often called in the UK, needs to be read with an understanding of the payment patterns in that business.
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DSO (Days Sales Outstanding) is one of the most important numbers to track for any company. If you are a small company it is arguably the most important one to manage cash flow
And it is a notoriously fickle metric, most people track it at month end, and yet their main sales receipts come in after... leading to a rather alarming result. DSO or debtor days as it is often called in the UK, needs to be read with an understanding of the payment patterns in that business.