DSO: Are You Really Getting Paid on Time?

Days Sales Outstanding (DSO) is the most common measure used to track the effectiveness of an organization’s credit and collections. But it can also be the most manipulated, making it among the least valuable, according to Judy Bicking, consultant and IOFM’s lead certification trainer. The first challenge is “when do you start the clock?” Because DSO is often used to evaluate performance of an AR department, many will push to start counting once the invoice is received by AR—and thereby…