Zone & Co reposted this
There are many ways in which finance teams can drive value within an organization. One that is often overlooked or taken for granted is cash. The cash conversion cycle is the lifeblood of a company. This is best demonstrated and actioned through days sales outstanding (DSO). Billing DSO is the average number of days invoices are outstanding until cash is received. Driving a lower DSO leads to accelerated cash flows. Effective DSO management starts with timely billing. Working capital generated from timely billing and a lower DSO can be invested back into the business to drive growth and innovation. While DSO is a powerful indicator of financial efficiency, its true value lies in proactive management. By prioritizing timely billing and optimizing processes, we not only accelerate cash flows but also strengthen financial resilience. To improve your DSO you must: –Enhance Billing Processes: Review and streamline billing procedures to ensure invoices are accurate, clear, and sent out promptly. –Leverage Technology: Explore automation tools that can expedite invoicing and payment processes, reducing administrative delays. Let’s ensure financial resilience by focusing on proactive DSO management and optimizing our processes for accelerated cash flows.
Co-founder & CEO, Upflow (YCW20)
1wWe’re hiring Chad 😂