Improve Days Sales Outstanding With Three Achievable Tricks

Abstract

Contracting can be tricky. It is easy for an organization to get behind in its financial processes and complete the work before obtaining a payment — or worse, before even a signed contract is in hand. Work before written acceptance is a substantial risk to the company and may result in disapproved work, unplanned discounting, and delayed payments. The business would be wise to consider a clear set of expectations, including periodic financial packages, a preapproval document for scope changes, and clear delegated authority for the team regarding work ahead, approvals, and contracting. Clear, proactive communication and positive relationship management are crucial to mitigating the risk.