Published November 21, 2019

 

The Nitty Gritty Behind DSO and How Electronic Delivery
Accelerates Cash Flow

 

One of the most effective ways to reduce DSO is to remove the mailing process entirely. Physical deliveries take time. Stuffing envelopes, whether by hand or at volume by machine, also takes time.

 

USPS standard mail and eligible bulk mail if your company uses third-party fulfillment to mail thousands of invoices monthly, are processed on a “time available” basis, or after the post-office has processed all first-class mail. For standard and bulk mail dropped off at the post office for delivery, the USPS will first process all first-class mail received that day. Your mail will be held for processing until the following day. That next day, the USPS will again process all first-class mail received that day, before attempting to process your standard or bulk mail from the day before, and so on until your mail can be processed.

 

At its most efficient, mail delivery is still delayed by weekends, holidays and the weather. Electronic delivery is the easiest way to circumvent the shortfalls of physical mail delivery.

 

Dynamic, smart e-Invoice solutions from the right technology partner ensure your invoices are delivered instantaneously by email or even by text. While electronic invoice delivery doesn’t ensure electronic payment, it does ensure cutting your DSO by as much as half and providing an electronic record of receipt.