It’s a story finance teams know all too well.
The collections team is following up consistently. Escalations are happening on time. Every interaction is logged and tracked. And yet – Days Sales Outstanding (DSO) refuses to budge.
For many mid-market and enterprise finance teams, this stagnation feels baffling. On paper, everything seems to be running smoothly. So why aren’t the results showing up?
Let’s break it down.
The Problem Isn’t Effort – It’s Timing and Targeting
Most collection efforts begin after the invoice is overdue.
By that time, you’re not influencing behavior – you’re reacting to it. Worse still, some customers may already be experiencing cash flow issues themselves, making recovery even harder. What started as receivables management quickly becomes damage control.
Another major issue? Lack of prioritization.
Finance teams often take a one-size-fits-all approach to chasing. But not all invoices or customers warrant the same level of urgency.
Here’s what’s commonly missed:
- Some invoices are high-value and should be fast-tracked.
- Some customers consistently pay late and need a different touchpoint cadence.
- Some sectors experience seasonal cash crunches, making timing everything.
- And external warning signs – like credit score downgrades or macroeconomic shifts – often go unnoticed.
The result? Collections teams burn time chasing the wrong accounts, at the wrong time, with the wrong strategy.
The Shift: From Effort-Heavy to Insight-Driven
To drive down DSO, finance teams need to stop chasing harder – and start chasing smarter.
That means:
- Proactive nudges before an invoice goes overdue
- Segmented outreach strategies tailored by customer behavior and risk
- A focused, daily collector worklist with clear action items: who to contact, when, and why
This isn’t just a change in process – it’s a change in mindset. One that leans on data, timing, and AI-driven intelligence.
Where FinFloh Helps: Turning Strategy into Execution
This is exactly where FinFloh comes in.
FinFloh’s AI-powered collections engine analyzes your entire receivables portfolio and does three things exceptionally well:
1. Smart Prioritization of Accounts
FinFloh dynamically ranks accounts and invoices based on:
- Historical payment trends
- Customer risk profiles
- Current DSO impact
- External signals (e.g., credit rating changes, industry disruptions)
This ensures your team is always focused on the accounts that move the needle.
2. Automated Follow-Ups and Alerts
The platform automates reminders and proactively notifies customers about:
- Upcoming due dates
- Delays in payment
- Disputes or missing documentation
That means less manual effort for your team – and no missed opportunities for engagement.
3. Collector Worklist with Daily Actionables
FinFloh gives your collectors a clear, focused daily worklist.
Each action is backed by AI-generated insights that answer:
- Who needs a follow-up today?
- Why is this invoice a priority?
- What’s the best next step?
This transforms collections from a reactive grind to a strategic function that drives faster cash conversion.
If Your DSO Hasn’t Moved, It’s Time to Rethink the Playbook
Throwing more people and effort at collections won’t solve the problem. But data-driven prioritization, automation, and intelligent workflows just might.
With FinFloh, your team can:
✅ Reduce DSO by 40%
✅ 3x increase in collector productivity
✅ Automate 90% of customer follow-ups
✅ Boost working capital by 20%
Ready to Collect Smarter, Not Harder?
👉 Book a Demo to see how FinFloh can help you reduce DSO and unlock faster cash flow through smarter collections.