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The DSO Reduction Checklist

30 specific checks across invoice terms, dunning cadence, payment methods, and dispute resolution. The four levers that actually move Days Sales Outstanding.

01

Invoice Terms & Setup

Default terms, due dates, payment links, PO matching

02

Dunning Timing & Cadence

Reminder schedules, escalation, ownership

03

Payment Methods & Friction

ACH, card, autopay, decline handling

04

Dispute Resolution

SLAs, root cause review, partial payment

What's on the DSO reduction checklist?

30 specific checks across invoice terms and setup, dunning timing and cadence, payment methods and friction, and dispute resolution - the four levers that actually move Days Sales Outstanding.

What is a good DSO for a B2B company?

DSO within 5-10 days of your standard payment terms (e.g. 35-40 days on Net 30) is healthy. Materially higher usually signals a process gap in one of the four checklist areas, not just slow-paying customers.

Will this checklist work with any accounting system?

Yes. It's process- and policy-focused, not tied to a specific tool - the checks apply on QuickBooks, Xero, NetSuite, or a custom stack.

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