Shrink Your Days Sales Outstanding (DSO) with BuyCo
Expedite your Accounts Receivables, get paid quicker, optimize cash flow
Days Sales Outstanding (DSO) refers to the average days your company takes to collect accounts receivable from customers. The shorter your DSO, the faster you collect payments and the sooner your company makes cash. Now, proper and timely invoicing is central to reducing the DSO. You must ensure that you are sending invoices without delays and they are free of errors.
Why is shipment data critical to accelerate invoicing?
The timing of sending an invoice for goods shipped by container can vary depending on the terms of the sales agreement between the buyer and seller. However, it generally follows one of these common practices, where accurate and timely shipment tracking information is vital:
Invoicing upon shipment: The invoice is often sent when the goods are shipped and the Bill of Lading (BL) is issued. This is a common practice, especially in international trade, where the BL acts as a document of title and proof of shipment. The seller will send the invoice along with other shipping documents, such as the BL, packing list, and any certificates of origin or compliance.
Invoicing upon delivery: In some agreements, the invoice is sent when the goods have been delivered to the destination port or even after the goods have been received and inspected by the buyer.
How does BuyCo help companies reduce DSO?
BuyCo is a collaborative platform breaking the silos between Logistics and financial teams. It offers real-time access to two valuable data sets that streamline invoicing processes and enhance cash flow management.
Shipment tracking data
Through BuyCo’s shipment tracking data, companies can monitor the progress of their shipments from origin to destination in real-time. This allows accounts receivable teams to accurately time their invoicing based on key milestones like vessel departures or container deliveries at the destination. By integrating with shipping lines, BuyCo ensures that updates on shipment progress are received promptly, facilitating efficient and fast invoicing.
Trade documents status
BuyCo’s platform simplifies document management by centralizing all shipment-related documents in one convenient location. Users can create customized workflows to track the status of essential documents, ensuring that necessary approvals are obtained before invoicing. This real-time visibility enables accounts receivable teams to quickly identify when all required documents are in place, expediting and strengthening the invoicing process.
In summary, BuyCo equips companies with the necessary tools to send invoices to customers promptly and efficiently. By leveraging real-time data collection and distribution, BuyCo
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