Reduce DSO Without the Manual Work
Every extra day of Days Sales Outstanding (DSO) keeps your cash locked in unpaid invoices. Kolleno's AI Agents chase those invoices, match payments, and flag credit risk automatically, so you free up cash faster.
Everything you need to reduce DSO, working together
Don't let overdue invoices inflate your DSO
Kolleno's AI Agents run your entire collections sequence automatically. The faster the first follow-up, the lower your DSO.
- Trigger reminders before the due date and escalate automatically as invoices age
- Chase overdue invoices automatically, in the tone and follow-up timing you set for each customer
- Free your team from manual chasing
Make it easy to pay, match every payment in seconds
The faster customers pay and payments reconcile, the lower your DSO. Kolleno removes the friction on both sides.
- Give customers a branded payment portal with multiple payment methods
- Match every payment to its invoice automatically, including partial and multi-currency payments
- Post payments straight to your ERP with two-way sync, no manual entry
Catch the risks and disputes that drag DSO up
Most late payments start with a credit risk or a dispute. Kolleno catches both before they turn overdue.
- Monitor every account in real time and flag credit risk before invoices go overdue
- Resolve disputes end-to-end with AI-driven insights
- Use agency credit reports to extend terms on evidence, not guesswork
Lower DSO by catching problems before month-end
Track the numbers that drive your DSO as they move, not in a report from last week.
- Forecast cash flow based on customer payment patterns and predicted payment dates per invoice
- See overdue balances and average days late in real time, broken down by customer, region, or currency
- Spot balances slipping while there's still time to act
Your team's effort, multiplied by AI Agents
Custom AI Agents, orchestrated by you
Configure AI Agents to handle collections your way. Set communication tone, choose languages, define escalation triggers, and adjust follow-up timing seamlessly.
The real cost of manual collections
The hidden cost isn't just late payments. It's everything your team does to chase them.
DNA Payments reduced manual AR work by 75%
Before Kolleno, everything was manual, we were running off Excel sheets with no formal customer communication. With Kolleno, we've moved into the 21st century with automation.
- 75% reduction in manual AR work
- 30% improvement in collection rates
- 15 hours saved per week on payment follow-ups
Frequently Asked Questions
How to reduce days sales outstanding (DSO)?
Reducing days sales outstanding means tightening the whole invoice-to-cash cycle: issuing invoices immediately and accurately, setting clear credit terms upfront, and running a structured collections sequence that starts before the due date rather than after. The fastest gains usually come from automating follow-ups so nothing slips. Kolleno’s AI agents run the entire collections sequence automatically, chasing overdue invoices and flagging credit risk to bring DSO down without the manual work.
What is a good DSO and how is it calculated?
DSO is calculated as (Accounts Receivable ÷ Total Credit Sales) × Number of Days in the Period. A good DSO sits at or slightly below standard payment terms. For net 30 terms, a DSO in the 28–32 day range is healthy. A DSO running well above terms points to a gap in the collections process worth closing. Tracking it in real time, rather than at month-end, makes DSO reduction far easier to act on.
What is the best software to lower DSO?
The best software to lower DSO is an AR automation platform that connects to your ERP and handles collections, payments, and reconciliation in one place. The key features to look for are automated reminder sequences, embedded payment links, and real-time reporting. Kolleno is an AI-powered order-to-cash platform that does all of this. Its AI agents sequence follow-ups, prioritise at-risk accounts, and match payments automatically, turning DSO into a live metric instead of a monthly report.
How quickly can DSO be reduced?
It varies by starting point, but most improvement comes from closing the gap between an invoice becoming overdue and the first follow-up. This is often where the most time is lost. Automating that step tends to produce the quickest wins. Kolleno customers including 1Password and Deliverect have reduced overdue balances by 71% within the first three to six months by automating their collections process.
Why does a high DSO hurt cash flow?
A high DSO means cash stays locked in unpaid invoices instead of working for the business. A DSO of 60 days means revenue earned in January isn’t available until March, forcing reliance on credit facilities or delayed supplier payments. Lowering DSO releases that cash, often significant amounts for businesses with high invoice volumes. Kolleno surfaces rising DSO early so teams can act before it compounds.
Still have questions?
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