Calculate, Interpret and Improve Your DSO
DSO - for Days Sales Outstanding - is an important KPI to keep an eye on especially in fast-growing SaaS companies. It represents the number of days it takes your invoices to be paid by your clients. It, therefore, has an influence on your company’s cash flow. It also signals the efficiency of your cash management process.
There are 2 ways to calculate Days Sales Outstanding:
- The simple method: a simple formula that calculates the average number of days it takes for your customers to pay your company.
- The countback method: a more complicated and accurate way to find your DSO, where you go back month-by-month over a period of time.
Need help calculating your DSO? Check out our free spreadsheet that helps you calculate, interpret and reduce it!
Collection Email Templates to Get Paid
All B2B businesses have one common challenge: getting paid. Even with the best clients, there can be times when invoices are paid late or ignored.
The right Collection emails is the first step towards tackling this challenge and improving your A/R health. Good payment reminders also help you maintain a positive customer relationship in awkward (but necessary) situations.
Keep reading to find out what makes a collection email efficient. You’ll also discover ready-to-use collection templates and tips on how to make payment reminders more efficient for your B2B business.
8 Tips to Get Paid on Time
Not getting paid means you’re not receiving cash. Cash you need to invest, produce more, hire, and overall just grow. Cash flow issues are serious and can mean big trouble for your business.
Fortunately, we’re here to help! In this guide, you’ll learn about:
- Best practices for cash collection deployed by industry leaders.
- Tips to send the best payment reminders emails and letters.
- Our experts’ advice about how to interpret your A/R metrics.
And much more!
5 Top AR Metrics
On this spreadsheet, you'll find pre-filled formulas as well as explanations and examples to calculate the top 5 A/R metrics.
- DSO or Days Sales Outstanding.
- Accounts Receivable Aging.
- Accounts Receivables Turnover Ratio.
- ADD or Average Day Delinquent.
- CEI or Collection Effectiveness Index.
The 5 Maturity Stages of Cash Collection
B2B payments are currently undergoing a revolution. Finance leaders should pay close attention to this shift and take an early adopter approach to stay ahead of the curve.
In Upflow's latest piece, Alex Louisy, the CEO and co-founder, presents “The 5 Maturity Stages of Cash Collection”. Use this framework to identify which stage you are at, and learn how to take your accounts receivable strategy to the next level.
Definitive Guide to Capital Planning
Whether it is a new construction, a renovation project, or an expansion, accurately planning and budgeting for each phase of your program is (probably) your top priority. As capital owners, how do you decide which programs and projects to fund and gather all pertinent information to help you make those decisions?
This guide will cover—setting clear strategic goals, how to manage projects and programs from start to finish, keys to accurate forecasting and analyses, cost management, and the best ways to communicate and collaborate with your agency. Using this guide streamline your capital planning process, manage projects effectively, and navigate your way to success.
The Ultimate Guide to Cost Management
Knowing where your project costs stand at any time in a construction project is essential for understanding where you will finish. Without accurate cost data, capital owners are left guessing whether they will finish within budget or not. Accurate tracking and reporting of construction costs guarantee that you have the information you need to make critical decisions for your project.
The key to successful project cost controls begins with clearly defined systems and processes. It allows teams to handle changes swiftly, results in fewer disputes, and increases the likelihood of completing the project on time and under budget.
This guide will walk you through some of the best practices capital owners follow for estimating project costs, managing budgets, tracking commitment spending, and reporting on project health. You will be led through the process of developing a project budget and entering into a contract. We will cover how to track costs, report them, and keep spending under control to avoid cost overruns.
The Complete Buyer’s Guide to Intranets
When you’re looking for intranet software to improve communication, connection, and engagement – where do you start?
Download and discover:
- If an intranet is the right solution for your organization.
- How to create a strategy that optimizes your project.
- What to look for in a prospective intranet vendor.
- The intranet features your business needs.
Planning And Deploying a Successful Intranet
The ultimate 37-page guide to planning and launching a modern intranet, from the critical pre-launch period to maintaining engagement over time.
Learn how to:
- Create your business case.
- Plan your approach.
- Build your content.
- Launch your intranet.
- Measure your success.
Asynchronous Work Report: What Knowledge Workers Want and What’s Working
When you give something a name, you make it real in a new way. Knowledge workers are seeing this firsthand with asynchronous work (or “async”), which is when team members work on the same project or problem but at different times instead of synchronously. Suddenly, the term is everywhere — but asynchronous work is more than a buzzword.
Not just a by-product of the shift to remote or hybrid, it’s about strategically making new ways of working work. Async can help people cut down on unnecessary meetings, connect across time zones, achieve flexibility, and it even contributes to job satisfaction. But what do knowledge workers think about async?
Asynchronous Work Report: What Knowledge Workers Want and What’s Working
When you give something a name, you make it real in a new way. Knowledge workers are seeing this firsthand with asynchronous work (or “async”), which is when team members work on the same project or problem but at different times instead of synchronously. Suddenly, the term is everywhere — but asynchronous work is more than a buzzword.
Not just a by-product of the shift to remote or hybrid, it’s about strategically making new ways of working work. Async can help people cut down on unnecessary meetings, connect across time zones, achieve flexibility, and it even contributes to job satisfaction. But what do knowledge workers think about async?
Best Practices for Hiring and Retaining Employees
It costs a lot less to retain an employee than find and train a new hire, so employee retention keeps costs down, quality of service up, and business continuity running predictably. Employee retention rate is the percentage of people who stay during a specified time period, such as a quarter or year. Employee turnover rate is the percentage of people who must be replaced during that specified time. Planned reductions, such as with software that makes employees more productive, do not count toward turnover rate.
The Importance of KPIs
Would an airline pilot ever take flight without knowing that all of the plane’s gauges were functioning and understanding what they were displaying? Of course not! The gauges on the instrument panel are the pilot’s eyes into how every component of the craft is working and where the plane is in the sky, relative to expectations and other aircraft. Flying by gut instinct in today’s crowded skies is essentially flying blind and completely ill-advised.
Similarly, key performance indicators (KPIs) are like those gauges, enabling owners and managers of field service companies to operate with the same degree of visibility and confidence about how business is performing. These metrics demonstrate how well a company is doing relative to expectations and how much actual value the company is delivering to customers. Continually monitoring KPIs can help you minimize business expenses, provide better service, optimize technician productivity, and drive profitability.
Send The Right Techs to The Right Job with ThermoGrid
Before Smart Dispatching, the dispatcher would take the call, look at the day’s schedule, check technician availability, and dispatch the closest tech to the customer’s location.
After talking to the customer, the technician can then start to troubleshoot to find the source of the problem. Unfortunately, more often than not, the tech either doesn’t have the skill set to fix the particular piece of equipment or doesn’t have the parts necessary to do the job on the truck. The project is now delayed, wasting time and narrowing profits.
Which Dispatch Method Makes Sense for Your Business?
Your company’s processes for handling dispatch can make or break your business in a competitive technology-driven environment. Finding new sources of operational efficiency enable you to get work done quickly and with less resources.
The right software can bring efficiencies to every operation in your residential service contracting business, from more efficient routes and better matching of techs to customer problems to better performance evaluation and hiring practices. Here, we detail the specific improvements that Smart Dispatching can drive for your business.
