How to calculate days sales outstanding (DSO) or the average time it takes customers to pay

Welcome to this informative YouTube video about DSO, which stands for Day Sales Outstanding. In this video, we'll be discussing how to calculate your DSO and how to automate the process with Reach Reporting by bringing in live data from Quickbooks Online or Xero.

DSO is a metric used to determine the average time it takes for customers to pay you. In most businesses, DSO ranges from 30-40 days, but our goal is to get it down to just 15 days. By watching this video, you'll learn just how easy it is to calculate your DSO, and how automating the process can save you time and hassle.

If you're using Quickbooks Desktop, you may find that your DSO is longer than it should be. This is due to manual processes, lack of automated follow-up, no electronic payments, lack of transparency, and slow reconciliation of payments received. The key to reducing your DSO is to use cloud-based tools and payment processors.

We'll show you how to use Reach Reporting to bring in live data from QBO or Xero, and how this can help you automate your DSO calculation. With this tool, you can easily keep track of your DSO and take steps to reduce it.

In summary, if you're looking to reduce your DSO and streamline your payment processes, this video is a must-watch. With our helpful tips and tools, you'll be able to take control of your DSO and improve your cash flow!

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