Reducing DSO and Debtors Ageing
Gaurav Gupta, Chartered Accountant
A family business transition management expert, we plan and execute the family’s vision to transfer socio-economic capital and the maintain the family’s legacy and unity across generations
Every CEO and CFO is responsible for Reducing the DSO (Daily Sales Outstanding) of the company. It is a key financial metric and is monitored very closely to judge the financial performance of the company
DSO can be maintained / reduced by not allowing the current debtors to roll into the higher buckets and simultaneously collecting from the older overdue debtors, so that the metrics inflating the DSO are addressed simultaneously.
Companies that use the sales team to collect from debtors, will find it difficult to “Reduce the DSO”, as the sales teams don’t have the time to focus on debtors collections – they are focused on revenue and business relationships.
To “Reduce the DSO” – the company needs a professional and focused debtor’s management process that is best provided by an experienced and professional Working Capital Management Company.
About GGA
GGA assists the sales teams to focus on revenue and business relationships while GGA manages the debtor collections process in a focused and professional manner. This is win - win situation, as both revenue growth and sales collections get high focus.
GGA operates on an all India basis, with presence in major Indian cities and 200 + salaried resources. Further, we are a “pay for performance” company.
Please call 98111 63422 for a discussion..