13 Proven Strategies to Reduce DSO

How Fortune 1000 companies and SMEs automate credit and accounts receivable operations to improve working capital and reduce DSO and past-due A/R.


Chapter 01

Executive Summary

Chapter 02

Customer Onboarding and Credit Approval Process

Chapter 03

Dynamic Scoring for Credit Review

Chapter 04

Improving the Invoicing and Payment Process

Chapter 05

Shifting Focus to Credit Card Payments to Improve Payment Experience

Chapter 06

Deciding Who to Contact on Any Given Day

Chapter 07

Collections Correspondence Strategies

Chapter 08

Automated Dunning Emails with Payment Links

Chapter 09

Doubling Down on Collections by Eliminating Waste from the Cash-Application Process

Chapter 10

Shifting Focus to Valid Deductions

Chapter 11

Providing Research Ready Deductions

Chapter 12

Leveraging a Connected Platform for All of Credit-to-Cash

Chapter 13

Collaborating with Buyer A/P teams

Chapter 14

Accounts Receivable on Autopilot – Autonomous Receivables
Chapter 01

Executive Summary

CFOs rightly refer to cash as the oxygen for the business. However, despite leveraging various working capital improvement initiatives, organizations continue to rely on working capital loans According to a survey report by Hackett, debt as a percentage of revenue has increased steadily over the last few years from 35% of revenue for the period 2008-2013 to 51% today, a 10-year high.

Where is this cash stuck? Mostly, in receivables as DSO increased by 4%. For the fourth year in a row, DSO degraded as organizations pushed payment term extensions on their supply base.

Finance leaders worldwide have to, therefore, pay more attention to collections and credit management process to define better credit policies and drive teams towards proactive collections to improve working capital.

This e-book has distilled insights from our study of credit and A/R transformation projects at 300+ organizations on how Fortune 1000 companies and SMBs reduced DSO by 15%-20% by implementing these eleven strategies.

Broadly, the strategies are categorized into the following buckets:

  • How to reduce the credit risk of delinquent accounts?
  • How to build a more proactive collections process?
  • How to eliminate routine transactional tasks in credit and collections?
  • How to improve overall process efficiencies across A/R functions to refocus resources on credit and collections?



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