Days sales outstanding (DSO) is an accounting metric that measures the average number of days it takes a business to receive payment for goods and services purchased on credit. The lower the DSO, the faster payments are collected. The higher the DSO, the longer it takes the company to see its money. DSO is one part of the order-to-cash cycle, which starts with a customer ordering an item or service and ends with the company’s receipt of payment from the customer. Steps in between include order entry, fulfillment, shipping, invoicing, collections and payment processing. DSO is also part of the cash conversion cycle (CCC), which measures the length of time between when a company purchases inventory until it receives payment from customers who buy it.