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Customer DSO

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The customer DSO is the DSO calculated for a single customer: the average number of days it takes that customer to pay its invoices.

Example

A company’s overall DSO is 42 days. Upon reviewing each customer individually, the company discovers that one major account pays on average after 85 days. This account is driving up the overall figure, so collection efforts are focused on this customer first.

Why It’s Important

The overall DSO can mask significant differences. Tracking it on a customer-by-customer basis makes it possible to identify delinquent payers, tailor collection efforts, and review a customer’s payment terms or credit limit.

Learn more: How to calculate your DSO and Aston AI dashboards.

See also: DSO, behavioral scoring, customer risk.

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