Payment practices have deteriorated significantly across all sectors as a result of the Corona pandemic. Companies in the transport and logistics sector have to wait a particularly long time for their money. According to industry publications, the days sales outstanding (DSO) – the period between invoicing and receipt of payment – recently rose to an average of 200 days in Germany.
In this difficult situation, smooth receivables management is of particular importance. The rule of thumb applies: The later the response, the greater the risk of default. DSO can be improved immediately with a few basic, often simple measures:
1. process optimization:
Average payment terms have increased dramatically in the Corona pandemic. This makes fast invoicing and short payment terms all the more important. To achieve this, efficient and lean processes must be installed. In small and medium-sized (often owner-operated) businesses, there is potential for optimization here. Often, the administration of receivables management is organized in a confusing manner. For example, when outstandings are managed via Excel spreadsheets and invoices are written at different locations. To gain more speed, bad processes must be mercilessly uncovered. Manual work is required here. Staff shortages without an efficient receivables management software solution can quickly become a bottleneck.