Day sales outstanding (DSO) is the term used to measure how much time it takes for a business to get paid for a product or service. The goal of a business is to keep the DSO as low as possible. The longer it takes a company to get its invoices paid, the greater the likelihood for a company to incur a cash flow problem. Days sales in receivables are the same thing as DSO.
Most businesses that invoice customers later struggle with getting all their customers to pay in full and on time..
