Reduce Days Sales Outstanding (DSO) to Improve Your Cash Flow

Instead of focusing on selling products, a service business’s focus is on its workforce. In the service industry, employees and labor are considered the “product” of a company. In addition to job costing and looking at profit margins, there is another critical KPI that service organizations need to watch. The day sales outstanding (also known as DSO) is a calculation used to estimate the average length of a company’s collection period.

Source: GrowthForce