Improve Your Days Sales Outstanding – get prepared for the holiday period!
Back in March we posted a blog that discussed the importance of improving your Days Sales Outstanding (DSO) to help improve your cashflow. The holiday period is fast approaching and this can be a cashflow challenge for many businesses. So we’ve dusted off that earlier post as a bit of a reminder of a couple of easy ways to improve your DSO using Cumulo9 Mailpost Technology.
DSO is a key metric in many companies. With the cost of credit remaining tight and banks reducing credit lines not to mention the extended holiday season coming up, the ability to collect funds quickly is of paramount importance. Cumulo9’s Mailpost offers two compelling ways to reduce DSO with its state of the art email capabilities.
- Invoice Queries – many of our customers are amazed when they start receiving calls from corporate customers to reconcile statements within ten minutes of emails being sent out, instead of waiting five days for the snail mail invoice to reach the accounts payable desk!
- Late payers – a large number of customers pay their invoices as late as possible. Some businesses like utility companies offer various discount incentives to encourage Direct Debits and on-time payments, however there are still a large percentage that pay late, or by cheque. By inserting a payment button on the invoice or in the email itself, we have found that DSO can be reduced by up to 20% for that demographic of customer. Cumulo9’s Mailpost is fully integrated with payment solutions like DPS and POLi including the generation of payment links.
The maths makes sense! For a company with annual turnover of $150m and a line of credit costing 12.5%, reducing DSO by 1 day is worth $513,000. That alone is worth a lot more than the stamp savings!
Drop us a line if you’d like to discuss how Cumulo9 can help you with improving your DSO this holiday season and into 2016.