Reduce DSO
Reduce DSO
by invoicing faster
Shorten DSO by raising the invoice the day the goods ship, instead of days later.
The question: How can manufacturers reduce DSO?
The short answer
Days sales outstanding counts from the invoice, but cash is delayed from the day goods ship. Every day an invoice waits after shipment is a day added before the payment clock even starts. InvoiceIQ AR by Analytos shortens that invoicing lag by raising the invoice from the shipping document the same day. It does not shorten collections; that part of DSO needs a collections process.
The parts of DSO, and which one InvoiceIQ AR addresses
| Part of the delay | Addressed by InvoiceIQ AR? |
|---|---|
| Goods shipped, invoice not yet raised | Yes, this is what it automates |
| Invoice wrong, customer disputes it | Reduced: priced from the order, fulfilment behind every line |
| Invoice correct, customer pays late | No, that is collections |
| Payment received, not yet applied | No, that is cash application |
Is this a fit?
A good fit when
- Invoices go out days after shipment
Not the right tool when
- Invoices already go out on time and the delay is in collection
Evidence
- TargetWe target invoices raised within 1–2 days of the shipment document arriving. This is a target, not a measured result.
How we label claims: evidence and claims policy.
Frequently asked
questions
It removes the invoicing delay, which is part of DSO. How much depends on your current lag, so we measure it first.
No. InvoiceIQ AR does not run collections, dunning, cash application, remittance matching or customer AP-portal submission.
Related questions
See InvoiceIQ AR on your own documents
InvoiceIQ AR by Analytos: ai accounts receivable automation. A walkthrough starts with your real shipping documents and sales orders.