{"id":65455,"date":"2023-10-27T14:32:12","date_gmt":"2023-10-27T13:32:12","guid":{"rendered":"https:\/\/www.cashontime.com\/en\/?p=65455"},"modified":"2025-04-18T16:40:50","modified_gmt":"2025-04-18T15:40:50","slug":"dso-calculation-excel-template","status":"publish","type":"post","link":"https:\/\/www.cashontime.com\/en\/templates\/dso-calculation-excel-template\/","title":{"rendered":"DSO calculation Excel template"},"content":{"rendered":"<h2>What is DSO?<\/h2>\n<p><strong>DSO (Days Sales Outstanding)<\/strong> is a financial indicator used by companies to assess their receivables management performance and <a href=\"\/en\/articles\/debt-collection\/\">collection<\/a> efficiency. This indicator measures the average number of days between the issue of an invoice and its payment by the customer.<br>\n<strong>Good DSO management<\/strong> enables companies to anticipate cash inflows and thus improve their cash management, <strong>improve their WCR<\/strong> (Working Capital Requirement), since collecting customers more quickly will reduce the company\u2019s WCR. It also enables companies to analyze customer risk by identifying trends and potential customer payment problems.<\/p>\n<p style=\"text-align: center;\"><a target=\"_blank\" data-obflink-url=\"aHR0cHM6Ly9scC5jYXNob250aW1lLmNvbS9lbi9kc28tY2FsY3VsYXRpb24tbW9kZWwv\" class=\"bouton vert\" tabindex=\"0\">Download the template<\/a><\/p>\n<h2>What are the different methods for calculating DSO?<\/h2>\n<p>There are <strong>2 methods for <a href=\"\/en\/articles\/dso\/\">calculating DSO<\/a><\/strong>: the accounting method and the sales depletion method (also known as \u201ccount back\u201d).<\/p>\n<p>The <strong>accounting method<\/strong> is the simplest way of calculating DSO. However, this method is more relevant if the company\u2019s sales remain constant, as it does not take into account the seasonal nature of sales. If a company\u2019s sales are seasonal, it is more appropriate to use the sales depletion method.<\/p>\n<p>The <strong>method of calculating DSO by depletion<\/strong> is more complex, but if a company\u2019s business is subject to seasonality, it is preferable to use this method. This method consists in calculating the number of days of sales needed to absorb all receivables.<\/p>\n<p style=\"text-align: center;\">You\u2019ll find these 2 calculation methods in our downloadable document.<\/p>\n<p style=\"text-align: center;\"><a target=\"_blank\" data-obflink-url=\"aHR0cHM6Ly9scC5jYXNob250aW1lLmNvbS9lbi9kc28tY2FsY3VsYXRpb24tbW9kZWwv\" class=\"bouton vert\" tabindex=\"0\">DOWNLOAD THE TEMPLATE<\/a><\/p>\n<h2>What will you find in this Excel template?<\/h2>\n<p>You can use this Excel template to :<\/p>\n<ul>\n<li>Calculate your DSO using the <strong>accounting method<\/strong><\/li>\n<li>Calculate your DSO using the <strong>depletion method<\/strong><\/li>\n<li>Find <strong>7 tips to reduce your DSO<\/strong><\/li>\n<li>Discover the <strong>different functions<\/strong> of the CashOnTime platform<\/li>\n<\/ul>\n<h2>How do I use this DSO calculation model?<\/h2>\n<p>To use this DSO calculation model :<\/p>\n<ul>\n<li>Start by <strong>filling in the form to download<\/strong> the Excel document.<\/li>\n<li>In the \u201cDSO \u2013 accounting method\u201d worksheet, <strong>fill in the grey cells<\/strong> in the \u201cSales\u201d and \u201cAccounts receivable\u201d columns. Your <strong>DSO will be calculated automatically<\/strong> and will appear in column F of the table. You can also analyze the <strong>evolution of your DSO<\/strong> month by month.<\/li>\n<\/ul>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-66842 size-full\" src=\"https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/fichier-calcul-dso.png\" alt=\"fichier calcul dso\" width=\"2079\" height=\"686\" srcset=\"https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/fichier-calcul-dso.png 2079w, https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/fichier-calcul-dso-360x119.png 360w, https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/fichier-calcul-dso-710x234.png 710w\" sizes=\"(max-width: 2079px) 100vw, 2079px\" \/><\/p>\n<ul>\n<li>In the \u201cDSO \u2013 depletion method\u201d worksheet, <strong>fill in the grey cells<\/strong> in the \u201cSales\u201d and \u201cAccounts receivable\u201d columns, and <strong>your DSO will automatically be calculated<\/strong> using the depletion method. You can also view the <strong>evolution of your DSO<\/strong> month by month on the graph.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-66840 size-full\" src=\"https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/calculer-dso.png\" alt=\"calculer dso\" width=\"1845\" height=\"800\" srcset=\"https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/calculer-dso.png 1845w, https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/calculer-dso-360x156.png 360w, https:\/\/www.cashontime.com\/en\/wp-content\/uploads\/calculer-dso-710x308.png 710w\" sizes=\"(max-width: 1845px) 100vw, 1845px\" \/><\/p>\n<h2>How do you interpret DSO?<\/h2>\n<p>The <strong>higher the value of your DSO<\/strong>, the longer it takes your customers to pay their invoices, which can have a negative impact on a company\u2019s cash flow by affecting its ability to pay its suppliers\u2019 invoices itself. On the other hand, the <strong>lower your DSO<\/strong>, the shorter your customers\u2019 payment terms, which gives the company more cash and thus reduces its WCR.<br>\nThere are several levers you can use to <strong>reduce your DSO<\/strong>. Download our document for <strong>7 tips<\/strong>. One of these tips is to use <a href=\"\/en\/articles\/software-collection-best-solutions\/\">collection software<\/a> such as CashOnTime, which enables you to set up automatic dunning processes using criteria such as payer behaviour and creditworthiness indices, and thus optimize your DSO.<\/p>\n<p style=\"text-align: center;\"><a target=\"_blank\" data-obflink-url=\"aHR0cHM6Ly9scC5jYXNob250aW1lLmNvbS9lbi9kc28tY2FsY3VsYXRpb24tbW9kZWwv\" class=\"bouton vert\" tabindex=\"0\">DOWNLOAD THE TEMPLATE<\/a><\/p>\n<blockquote><p>Since we started using CashOnTime, we\u2019ve noticed a very rapid improvement in our DSO (a few months), since we\u2019ve saved around twenty days.<\/p><\/blockquote>\n<p>S\u00e9bastien Chaize, Coordinator Sales Administration Group \u2013 Ayming<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>What is DSO? DSO (Days Sales Outstanding) is a financial indicator used by companies to assess their receivables management performance and collection efficiency. This indicator measures the average number of days between the issue of an invoice and its payment by the customer. Good DSO management enables companies to anticipate cash inflows and thus improve [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":70757,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Download an Excel template for calculating DSO","_seopress_titles_desc":"Download an Excel template of the DSO calculation and calculate it according to the accounting method and the depletion method.","_seopress_robots_index":"","inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[124],"tags":[],"class_list":{"0":"post-65455","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-templates"},"acf":{"url_francaise":"https:\/\/www.cashontime.com\/modeles\/modele-excel-calcul-dso\/","url_espagnole":"https:\/\/www.cashontime.com\/es\/plantillas\/plantilla-excel-de-calculo-de-dso\/"},"_links":{"self":[{"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/posts\/65455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/comments?post=65455"}],"version-history":[{"count":3,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/posts\/65455\/revisions"}],"predecessor-version":[{"id":73432,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/posts\/65455\/revisions\/73432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/media\/70757"}],"wp:attachment":[{"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/media?parent=65455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/categories?post=65455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashontime.com\/en\/wp-json\/wp\/v2\/tags?post=65455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}