Days Accounts Receivable Outstanding (also known as “Days Sales Outstanding” or “DSO”) is a measure of the average time it takes for customers to pay invoices. In essence, it’s a metric used to assess an organization’s efficiency at collecting payments from its customers. By calculating the Days Accounts Receivable Outstanding, companies can better understand their overall cash flow and determine if accounts need to be adjusted accordingly. Ultimately, having an up-to-date understanding of DSO enables organizations to better manage their finances and make decisions that will help them achieve their financial goals.