What is dso and how to reduce

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DSO stands for Days Sales Outstanding. It is the average number of days it takes for a company to collect payment after a sale.

To reduce DSO, companies can offer discounts for early payment or implement stricter credit policies.
Improving the accuracy of invoices and billing statements can also help reduce DSO.
Automating the payment process and using electronic invoicing can speed up the payment process.
Regularly reviewing and monitoring accounts receivable can help identify and address any issues that may be causing delays in payment.
Establishing strong relationships with customers and communicating clearly about payment terms can also help reduce DSO.