See what even a day's improvement in debtor collections will do to your bottom line. All the 21clradio writers that mentioned this topic in their recent articles focus on its cons, and I don't blame them.
Here is how the Collect DSO chart illustrates your cash position, vis-à-vis your outstandings
Step 1: Insert your total uncollected receivables against -'Debtors Balance'
Step 2: Insert your total sales for your last trading period against - 'Sales for Period'
Step 3: Fill in the - 'Number of Days in Sales Period'.
The chart will now show you your ‘DSO’ (Days Sales Outstanding). This is the amount you are due, divided by your average daily sales.
Step 4: Insert the 'number of days' outstanding by which you would like to reduce your DSO.
The chart will now show you the increase in your current cash position, if your chosen number of days improvement is realized.
Yes I would like more information on SunSystems Collect, my details are as follows: