InvoiceBerry Tips for for Freelancers & Small Businesses 9 Most Important Financial Numbers Explained | Page 10

7. Days Sales Outstanding
This is the average number of days it takes for your clients to
pay your invoices. A small number is good, as it usually means
more cash flow. A larger number means you need to chase your
late payers. To calculate it:
payment terms * 133% > Days sales outstanding
If your DSO is high, you should follow one of our many tips on
how to decrease payment time on invoices.