DSO
DSO is not a metric, it is a diagnostic
A walkthrough of how to read DSO the way an experienced AR lead does, and what to fix first when it climbs.
A rising DSO is a symptom
DSO can rise because customers are slow, invoices are wrong, payment terms are loose, collections follow-up is inconsistent, or the company is selling into a segment with longer approval cycles.
Treating DSO as a single number hides the actual problem. Segment it by customer size, product line, invoice age, contract terms, and owner before deciding what to fix.
Fix invoice accuracy before collections tone
If invoices are wrong, more aggressive follow-up only creates more noise. The fastest DSO wins often come from cleaning billing data, sending invoices faster, and making it easy for customers to pay.
Cadence beats heroics
Collections should not depend on who has time that week. A simple weekly cadence, clear templates by aging bucket, and escalation rules will outperform occasional heroic pushes almost every time.