Bookkeeper Mock Interview
Practice 30 Bookkeeper interview questions covering reconciliation, accuracy, and accounting software proficiency.
Question 12 of 30
What are Days Sales Outstanding, and what is indicated when days outstanding grows?
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Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
This is a question that gauges whether you understand metrics and can use them to catch trends in the business. Days Sales Outstanding is a metric that measures the health of Accounts Receivable. A high or growing balance indicates that there is a collections problem.
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
"Days Sales Outstanding is an important metric that measures the health of Accounts Receivable. The metric indicates how many days of sales are hung up in accounts receivable at any given time. A growing balance indicates that there may be some issues with collections, which could lead to cash flow problems in the near future. Given this, collections should be monitored closely and adjusted accordingly, if DSO is growing."
I am a CPA with over 12 years of bookkeeping experience.
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. A growing balance indicates that there may be some issues with collections, which could lead to cash flow problems.
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