ar-dso-disciplinelisted

# AR & DSO Discipline — Get Paid Faster ## Overview Days Sales Outstanding (DSO) is the average time to collect after a sale. For any business that invoices, uncollected receivables are **cash you earned but can't use** — and late payment is the quiet killer of otherwise healthy SMBs. Getting paid faster is usually the cheapest source of cash a founder has: no dilution, no debt, just discipline and better terms. ## The Process 1. **Measure DSO and aging** — average collection time + a bucketed aging report (0–30, 31–60, 61–90, 90+). 2. **Invoice instantly and correctly** — same-day, clear terms, right contact; delays compound. *Gate: invoicing days after delivery silently adds days to DSO.* 3. **Shift terms upstream** — deposits, milestones, upfront, autopay/card-on-file; reduce net terms where you can. 4. **Systematize follow-up** — automated reminders before and after due date, escalating cadence (pairs with an AR/AP operator agent). *Gate: ad-hoc, emotional chasing = inconsistent collections; make it a scheduled sequence.* 5. **Make paying easy** — online payment, multiple methods, one click. 6. **Enforce consequences** — late fees, work-stop, or credit holds for chronic offenders; fire unprofitable late-payers. ## When to Use - Cash tight while revenue looks fine - Growing overdue/aged receivables - Service/B2B businesses on net terms ## Applying It Well - Deposits/upfront beat any collection tactic — design them in. - Consistent automated reminders outperform sporadi