How Trade Businesses Can Reduce DSO

Use weekly AR routines to shorten days to payment.

Trade specific context: DSO improvement for trades

DSO comes down when AR is run as a weekly operating rhythm with accountable owners. Consistency in follow-up usually matters more than one-off recovery pushes.

USA vs Australia terminology

Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.

Recommended billing model

Model: weekly AR performance loop

1. Agree on payment terms and approval steps before work starts.
2. Invoice immediately when each billable stage is complete.
3. Schedule reminders before the due date and on the due date automatically.
4. Escalate overdue accounts on a clear, fixed schedule.

Common blocker and fix

Frequent blocker: no weekly AR ownership

Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.

Example: A Monday overdue review drives a clear call list and reminder schedule, reducing average days to payment over two cycles.

Common questions for DSO improvement for trades

What is a good DSO reduction plan for tradies?
Assign weekly AR owner, track aged debt, and follow fixed reminders.

Which clients should be prioritized first?
Prioritize high value overdue invoices and repeat slow payers.

How fast can DSO improve?
Many businesses see early gains within one to two billing cycles.

Metrics to review weekly

• Overdue value by aging bucket.
• Average days to payment by client type.
• Reminder response rate and promise to pay completion.
• Dispute volume and resolution lead time.

Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.

Want to automate follow-ups and get paid faster?

Invoice Chase helps trade businesses send consistent reminders with less admin overhead.