In every business, be it small scale or large scale, the business or company need to have a proper, effective, efficient and functional DSO. The DSO aids to gain a good understanding of the duration it takes for a customer to make payment. Moreover, no business can function properly when its clients or customers are late on payment. Hence, DSO is crucial for accountability.


DSO which simply means Days Sales outstanding is known as a metric that helps the duration it takes for a customer or client to pay any outstanding invoices owed to a company or organization. With the use of accounts receivable collection software, the DSO is able to quickly seek out the time it takes an organization's customer to pay up their outstanding invoices. In order for a organization's growth to prosper especially in it accountability the DSO is meant to be low in frequency rather than being high in frequency. This means when the Company DSO is seen to be low, this hereby indicates that it takes the client's or customers less time to pay outstanding invoices. However, in a case whereby the DSO is seen high, that therefore indicates that the customers or clients take a lot of time to pay on their invoices. We can simply say that, for accountability growth of a company to progress, the company's DSO needs to be low.


When it comes maintaining a low DSO, this can be one of the most difficult and challenging task,but it can be attained by the following ways below;

Maintaining a good relationship with your customers: Bad relationships leads to high DSO and that is not needed for a proper accountability of a business or organization 

The customer credit risk ought to be tracked: By doing this, the company is able to fish out those customers that delay on payment and those that do not pay at all. This allows the company to create or strategize on how best to handle these set of customers, which in turn helps reduce the days of outstanding account for good. 


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