4 Sure-Proof Ways to Reduce DSO
Make an impact on DSO right from your mailroom and increase your business’ cash flow
More than a third of all invoices are paid late. But your business doesn’t have to be content with getting paid weeks after you really need your cash. There are a number of ways businesses can adjust their invoicing process to reduce Days Sales Outstanding (DSO) and get paid faster.
1. Reduce delays in payment due to incorrect mail addresses
Your customers cannot pay a bill they never receive, which makes it especially important that you keep your customer addresses up-to-date. This can be done by adding address validation software to your business’s outgoing mail process.
Quick Takeaways:
- Add address validation software
- Be sure you are using the most up-to-date CASS database
- Qualify for postage discounts with address correction software
2. Ensure that customers receive their invoice with email invoice delivery
More than 60% of businesses believe that e-Delivery is going to be the main source of customer communications within the next five years. However, most companies still use print mail as the primary or only way they communicate with customers.
Sending invoices electronically helps your business get customer payments faster and you can track delivery and open rates. This enables businesses to quickly fix deliverability issues, and be able to send reminder emails and have proof of delivery.
Quick Takeaways:
- Try multi-channel delivery options to quickly ensure they are delivered and received
- Customers are more likely to respond electronically than via the mail
- Save on postage and mailing costs
3. Send a digital reminder to customers
Customers would definitely rather get a friendly reminder to pay their bill than a final notice letter in the mail. Quickly and easily send bill reminders and notices to customers electronically. This doesn’t cost your business anything extra in mailing and postage costs, and it will improve customer communications.
Quick Takeaways:
- Send reminder notices immediately
- Improve customer experience using a friendly e-reminder instead of a final notice in the mail
- Save on postage and mailing costs
4. Allow customers to pay online
The less friction you place between your customers and their ability to pay the better! It helps your customers have a great experience and you get paid faster. Having an online portal that they can link to directly from an email or text message makes paying a seamless experience. Some software has online pay portals online where customers can enter their credit card or link up an account.
Quick Takeaways:
- Set up a pay portal
- Link it to your emails and texts
Mail Management Software for Reducing DSO
Adding automation is one of the best methods for decreasing DSO. If your accounts receivable process is mostly manual by design, there’s a better, faster, more secure way. With Impress Mail Management software, you can add automation at every phase of your process and include other channels in addition to postal mail in order to reach and compel your customers. Get in touch with a Quadient rep to learn how Impress can positively impact your business and bottom line.