4 Sure-Proof Ways to Reduce DSO

October 3, 2019
Author: Caroline McManus
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Control this critical mailroom metric and increase your business’ cash flow

More than a third of all invoices are paid late. But your business doesn’t have to be content with getting paid weeks after you really need your cash. There are a number of ways businesses can adjust their invoicing process to reduce Days Sales Outstanding (DSO) and get paid faster.

 

1. Reduce delays in payment due to incorrect email addresses

11% of invoices are paid late because the customer never received the invoice”

Your customers cannot pay a bill they never receive, which makes it especially important that you keep your customer addresses up-to-date. This can be done by adding address validation software to your business’s outgoing mail process.

Quick Takeaways:

  • Add address validation software
  • Be sure you are using the most up-to-date CASS database
  • Qualify for postage discounts with address correction software
 

2. Ensure that customers receive their invoice with email invoice delivery

More than 60% of businesses believe that e-Delivery is going to be the main source of customer communications within the next five years. However, most companies still use print mail as the primary or only way they communicate with customers.

Sending invoices electronically helps your business get customer payments faster and you can track delivery and open rates. This enables businesses to quickly fix deliverability issues, and be able to send reminder emails and have proof of delivery.

Quick Takeaways:

  • Try multi-channel delivery options to quickly ensure they are delivered and received
  • Customers are more likely to respond electronically than via the mail
  • Save on postage and mailing costs
 

3. Send a digital reminder to customers

Customers would definitely rather get a friendly reminder to pay their bill than a final notice letter in the mail. Quickly and easily send bill reminders and notices to customers electronically. This doesn’t cost your business anything extra in mailing and postage costs, and it will improve customer communications.

Quick Takeaways:

  • Send reminder notices immediately
  • Improve customer experience using a friendly e-reminder instead of a final notice in the mail
  • Save on postage and mailing costs
 

4. Allow customers to pay online 

The less friction you place between your customers and their ability to pay the better! It helps your customers have a great experience and you get paid faster. Having an online portal that they can link to directly from an email or text message makes paying a seamless experience. Some software has online pay portals online where customers can enter their credit card or link up an account. 

Quick Takeaways:

  • Set up a pay portal
  • Link it to your emails and texts
 

Find out what your business can do to decrease your day's sales outstanding (DSO) and positively impact your business and bottom line. 

 

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