To forecast Accounts Receivable using Days Sales Outstanding (DSO), first, calculate DSO by dividing the ending accounts receivable balance by average daily sales. Next, apply the calculated DSO to projected future sales to estimate future accounts receivable balances. Finally, regularly monitor actual DSO against forecasted values, adjusting projections as needed to ensure accuracy in cash flow planning and financial decision-making.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Predictive Analytics: A Smarter Way to Boost Your Cash Flow
Accounts Receivables Analytics: What is it, and why is it so important?
Emagia Customer Services: Transform Your Customer Financial Services to the Digital Age
The Journey to Smarter Accounts Receivable Management with AI
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
AR Automation for MS Dynamics
Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
