Tag

DSO reduction

3 insights

Line chart titled The Same Cash, Collected a Week Later, comparing cumulative billings collected under same-day versus monthly-batch invoicing over a 60-day cycle; the same-day curve leads the monthly-batch curve by about 7 days, a timing gap worth roughly $190,000 of cash arriving later per week at a $10M firm.

Most Collection Delay Happens Before You Send a Single Invoice

Your DSO clock starts when work is earned, not when you invoice. Batch billing builds a week of lost cash into every cycle. Where the leak really sits, and how to close it.
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Bar chart showing annual revenue at risk from billing realization gaps at $3M, $5M, and $10M professional services firms

Firms Collect Roughly the Same Per Hour Whether They Discount or Hold Firm. The Leak Is Downstream.

Professional services firms debate rate strategy while losing 12% of revenue downstream. The fix isn't a rate card conversation - it's a collections process.
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Waterfall chart showing $510,000 in annual revenue lost by a $3M professional services firm through billing write-offs, invoice disputes, and uncollected AR due to process failures.

The Billing System Is Not Broken. The Process Around It Is.

The average professional services firm leaks 8–12% of annual revenue - not from bad clients, but from broken billing processes. Here is what it costs and how to fix it.
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