DPO and DSO: Critical Levers for Managing Cash Flow

Published On:

August 07, 2024

Authored By:

APQC

Public Content:

Many large, US-based organizations view hoarding cash as prudent practice. To keep more cash on hand, these companies pay their bills slowly, which means their vendors and suppliers wait longer to get paid.

Because of shifts like this in payment culture, cashflow management has become more challenging. Finance managers are increasingly vexed by longer payment terms and past-due customer balances. Recent research by the American Productivity and Quality Center (APQC) shows that over the past year, the number of finance managers prioritizing late customer payments as a top cashflow management concern increased by 10 percentage points.

Type:

Articles

Topics:

Finance and Accounting, General Accounting and Reporting

Related Resources

Summary of Open Standards Benchmarking Measures: General Accounting and Reporting

General Accounting and Reporting Key Benchmarks: Telecommunications Industry

Key General Accounting and Reporting Benchmarks: Pharmaceutical Industry

General Accounting and Reporting Key Benchmarks: Utility Industry

General Accounting and Reporting Key Benchmarks: Services Industry

General Accounting and Reporting Key Benchmarks: Retail and Wholesale Industry

General Accounting and Reporting Key Benchmarks: Media and Entertainment Industry

General Accounting and Reporting Key Benchmarks: Distribution/Transportation Industry

General Accounting and Reporting Key Benchmarks: Industrial Products Industry

General Accounting and Reporting Key Benchmarks: Aerospace Industry

Key Benchmarks at a Glance: Consumer Products/Packaged Goods Industry

General Accounting and Reporting Key Benchmarks: Automotive Industry