Why Lowering Your DSO Is One of the Fastest Ways to Strengthen Cash Flow (And Reduce Stress)
How a simple shift in communication and cadence led a client to say: “This is super helpful.”
Most business owners know the frustration:
Sales are strong. Work is getting done. Customers are satisfied.
Yet the bank balance doesn’t match the effort.
This gap is almost always hiding in one place:
Days Sales Outstanding (DSO) — the number of days it takes to turn a sale into cash.
One of our clients recently experienced a dramatic improvement in their DSO, and after just a few weeks of working with StraightForward, the owner said exactly what we hope to hear:
“This is super helpful.”
Not because we built a massive dashboard or reinvented their entire A/R system.
But because we helped them see and solve the issues that were quietly holding up cash.
Let’s break down the educational lessons from their experience.
DSO Isn’t Just a Number — It’s a Story About Your Business
DSO tells you the average number of days between finishing the work and getting paid for it.
But here’s the part many owners miss:
A high DSO doesn’t always mean customers are slow…
Sometimes it means the business is.
In this client’s case, their DSO issues fell into two buckets:
Internal Issues
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Crews not fully completing jobs
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Quality not meeting expectations the first time
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Delayed or incomplete documentation needed to invoice
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Customer disputes that stalled payment
External Issues
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Standard slow-pays
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Inconsistent follow-up
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Customers unclear on payment expectations
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Back-and-forth delays that went unnoticed
DSO is the mirror that reveals both.
How We Helped: Structure, Clarity, and Cadence
We didn’t build a complicated new system.
We made their existing system work better.
Here’s what we implemented:
1️⃣ Clear Weekly AR + DSO Reporting
Education first, numbers second.
We helped the owner and A/R team review:
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Aging buckets
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Payment patterns
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Problem accounts
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Internal delays causing invoice holdups
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How their DSO was trending
When owners see how operational issues directly affect cash, decision-making changes immediately.
2️⃣ A Predictable Collections Cadence
This is where the transformation happened.
We established a weekly rhythm between the owner and the A/R department to:
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Review outstanding invoices
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Identify bottlenecks
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Attack internal issues first
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Set expectations for customer follow-up
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Celebrate wins when DSO improved
The consistency alone created accountability and momentum.
Collections became a habit — not a fire drill.
3️⃣ Context + Narrative, Not Just Numbers
This is where fractional CFO support really shines.
We didn’t just say “DSO went down.”
We explained why:
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Which jobs triggered delays
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Which customers needed clearer terms
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Where communication broke down
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Which internal processes caused invoice slippage
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Which actions accelerated cash
That narrative empowered the team to fix issues permanently, not temporarily.
The Result: More Than Better Cash — Better Understanding
The client didn’t just collect faster.
They finally understood:
✔ Why cash had been tightening
✔ Which operational issues were affecting invoicing
✔ Where collections processes needed to change
✔ How to coach their team through better follow-ups
✔ How DSO reflected the health of their entire order-to-cash cycle
This is why the owner said:
“This is super helpful.”
Because clarity creates confidence.
Confidence creates action.
And action drives cash.
Why Every Owner Should Care About DSO
You don’t need more customers to improve cash flow.
You don’t need a bigger accounting department.
You don’t even need new software.
You need:
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A consistent cadence
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Clear reporting
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Better communication
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A CFO partner who interprets the story in the numbers
That’s how you get paid faster.
That’s how cash becomes predictable.
And that’s how businesses grow with less stress.
Ready to See How Much Cash You Could Free Up?
Download our DSO Reduction Calculator — the simple tool that turns abstract “days outstanding” into real dollars you could unlock.
With this editable Excel or Google Sheet, you can:
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Enter your total A/R
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Enter your average daily sales
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Watch it automatically calculate your DSO
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See the cash impact of reducing DSO by 5, 10, or 15 days
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Understand exactly how much money is stuck in unpaid invoices
It’s fast.
It’s clear.
And as many owners discover… it’s eye-opening.
Download the DSO Reduction Calculator
Unlock the cash hiding in your business — without selling more, hiring more, or raising prices.
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