You can report on DSO using the graph provided by Chaser.
Last updated: August 23, 2024
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Day Sales Outstanding (DSO) is a vital financial metric gauging your company's efficiency in collecting payments for sales made. With DSO integrated into Chaser, you gain immediate insights into the average number of days it takes your customers to settle their invoices.
The graph provides a clear and concise monthly breakdown of DSO over the past six months. By simply hovering over the bars, you can access the precise DSO figure for each month. Furthermore, the comparative analysis between the current month and the preceding one is visually presented, giving you a confident understanding of whether DSO is improving or declining.
In the graph, variations between the previous month and the month prior are highlighted in color, with improvements highlighted in green and declines in red. This intuitive visualization empowers you to swiftly identify trends and optimize your company's cash flow management.
Understand the calculation methodology of DSO in Chaser
In Chaser, calculating Day Sales Outstanding (DSO) involves meticulous consideration of several factors. Firstly, it evaluates the time lapse between the issuance of an invoice and its eventual payment date. This information is then aggregated every month, with each calculation conducted on the last day of the month. Crucially, every invoice settled within the given period contributes to the DSO metric.
Additionally, the calculation methodology in Chaser is comprehensive, taking into account the value of each invoice. This mechanism assigns greater significance to higher-value invoices, recognizing their amplified impact on your business operations. By weighting higher-value invoices accordingly, the graph provides a comprehensive depiction of your organization's payment collection dynamics. This thorough approach reassures you that no aspect of your financial situation is overlooked, enabling you to make well-informed decisions.