Average DSO, or Days Sales Outstanding, is a financial metric used by businesses to track their accounts receivables. It’s calculated by dividing the total amount of accounts receivable by the average daily sales over a certain period of time. In other words, it helps businesses measure how long it takes customers to pay them. As such, businesses seek to keep their Average DSO low in order to improve their cash flow and overall performance. Lower Average DSO also indicates improved customer relationships, as customers are paying on time. Ultimately, keeping track of your Average DSO can go a long way towards helping your business become successful.