DSO is a financial metric that measures how long it takes your company to collect payments on your outstanding sales. With DSO in Chaser, you can now easily see how many days, on average, your customers take to pay their invoices.
This graph calculated DSO on a monthly basis and will provide a view of the previous 6 months.
Hovering over the bars in the graph will show the DSO figure for the month. The previous month's figure will be compared to the month prior to indicate whether DSO is improving or declining in your organisation.
The difference between the previous month and the month prior will be highlighted in the graph and displayed in red (declining) or green (improving).
How is DSO in Chaser calculated?
The graph considers the date difference between the invoice issue date and the date that the invoice was paid. The graph is populated on a month-by-month basis (on the last day of the month) and will consider all invoices that were paid during the period. The calculation also considers the invoice value and uses this as a mechanism to add higher weight to higher-value invoices, meaning that the graph puts higher weight on higher-value invoices (which are more impactful to your business) than lower-value invoices.