Calculate your Days Sales Outstanding instantly. DSO tells you how long it takes, on average, to collect payment after a sale. It's the single most important metric for accounts receivable health.
Enter your numbers to calculate Days Sales Outstanding
DSO is the average number of days between invoicing a customer and receiving payment. It's the most widely used metric for measuring how efficiently a business collects its receivables.
The DSO formula:
DSO = (Accounts Receivable / Total Credit Sales) × Number of Days
< 30
Excellent
You're collecting quickly. Strong cash flow.
30–60
Average
Room for improvement. Automation can help.
> 60
Needs attention
Cash flow at risk. Act now.
The fastest way to reduce DSO is consistent, automated invoice follow-ups. Here's what works.
Set up email + SMS reminders that trigger automatically based on invoice status. Consistency is the #1 factor in getting paid faster.
SMS has a 98% open rate vs 20% for email. Adding an SMS nudge when invoices go overdue dramatically improves response rates.
A friendly reminder 3 days before the due date prevents most late payments. Clients often just forget, and a nudge is all they need.
Every reminder should include a direct link to pay. Remove friction and you remove excuses. One-click payment portals are ideal.
Terms like 2/10 Net 30 (2% discount if paid within 10 days) incentivize faster payment. Use our Net 30 Calculator to model the impact.
Identify chronic late-payers and adjust terms. Some clients need different treatment: tighter terms, deposits, or prepayment.
Read our complete AR automation guide for a full walkthrough, or check out our invoice reminder email templates for ready-to-use messages. You can also calculate early payment discount savings with our Net 30 calculator.
ChaseBot sends automated SMS + email invoice reminders that reduce DSO by 20-35%. Connect your Xero account and set it up in 2 minutes.
Try ChaseBot free