DSO Is a Clock, Not a Score
Interpret DSO as an operating clock for receivables follow-up.
DSO is useful when it becomes a work queue, not when it becomes a dashboard decoration. What DSO actually measures DSO translates accounts receivable into days of sales sitting unpaid. That makes it easier for non-finance partners to understand the cash effect of collection speed. Why it can mislead alone A blended DSO can hide segment problems. Enterprise terms, seasonal billing, and one large disputed invoice can move the average even when the core process is stable. How to manage from it Pair DSO with aging buckets, dispute reasons, and owner names. The metric should lead to a specific queue:…
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