What DSO is really telling you

Days Sales Outstanding measures how long it takes to collect after a sale. A DSO of 52 on Net 30 terms means you're financing your customers for three extra weeks — interest-free. Every day you shave off DSO is cash back in the business.

The collection cadence that works

  1. T-3 (three days before due): A friendly reminder. "Invoice #1042 is due Friday — here it is again for convenience."
  2. Due date: A short confirmation that payment is due today.
  3. +5 days: A direct but polite follow-up. Attach the invoice. Ask if there's a problem.
  4. +15 days: Escalate to a phone call. Email gets ignored; a call gets a date.
  5. +30 days: Manager-to-manager contact and a hold on new work until current.

Make paying frictionless

  • Accept cards and ACH on the invoice itself. A "Pay Now" link converts dramatically better than wire instructions buried in a PDF.
  • Store payment methods for repeat customers so renewals are one click.
  • Send statements monthly, not just individual invoices — a single statement showing everything outstanding prompts batch payment.

Triage with an aging report

Sort receivables into 0–30, 31–60, 61–90, and 90+ buckets every week. The 90+ bucket is where money goes to die — work it first and hardest. Anything past 120 days should trigger a write-off decision or a collections handoff, not another gentle email.

Don't torch the relationship

Collections is a relationship, not a war. Assume good faith first; most late payers are disorganized, not dishonest. A consistent, professional cadence collects more than aggression ever will.