Days Receivables Outstanding: Optimizing Operational Performance With Order To Cash Software
Days Receivables Outstanding
For finance executives, ensuring operational excellence is critical success factor for business that rely on accounts receivables for income. As part of the order to cash process, accurately measuring the performance of days receivables outstanding, or DSO, is integral to improving operational performance and cash flow visibility.
Organizations have traditionally monitored DSO manually, leading to time consuming and labor intensive processes. With data spread across disparate systems, collecting and distilling metrics can prove challenging, leading to keener insights only being possible on periodic basis. Gaining real-time, granular understanding of trends is impossible without robust Softwaresolution.
Finance executives are increasingly turning to software to monitor, manage and optimize their order to cash process and tracking DSO is cornerstone of this. Having the right technology in place enables the quantification and drilldown of DSO on regional and customer level, facilitating the efficient and accurate analysis of receivables. This allows finance teams to manage customer financials, reported and aged debt, interest and adjustments from single platform, with an end-to-end view across their order to cash lifecycle.
Advanced software brings comprehensive dashboards, designed to grant finance executives insights into their process. Comprehensive visibility enables executives to spot irregularities, analyze trends and take corrective actions or address any process inefficiencies. Actionable analytics offers the opportunity to quickly identify customers that are slow to pay and develop credit risk management strategies. With transaction data added, finance professionals are able to effortlessly determine the root cause and source of receivable.
When powered with automation and smart features, digital exchange of documents can be triggered with customers as soon as receivable arises. This significantly reduces the time taken to get paid and boosts collections and cash flow. Automated reminders and escalations can be used to nudge customers to pay invoices on time, reducing the amount of manual effort on behalf of the finance team.
Monitoring DSO has traditionally been laborious task, but with the right Softwaresolution, performance visibility can be maximized and data is accessible in real-time. it is never been easier for finance executives to take control of their accounts receivables and make optimizations to improve performance and drive down DSO.
