Boost Cash Flow by Reducing DSO in Your Restoration Business

Struggling with late payments? Lowering DSO doesn’t require complex systems. A few consistent habits can dramatically improve how quickly your company gets paid.

Today I want to talk about one of my favorite business acronyms. It might actually be my favorite. I go back and forth between two, but this one makes money show up, so it has the edge.

DSO.

Do you know what DSO stands for? Days of Sales Outstanding. It’s simply a measurement of how long it takes you to collect money. The goal is to drive that number down as low as possible. That takes effort and a few key practices. I’m going to share three actions plus one must-have at the end.

If we haven’t met yet, I coach restoration business owners and their teams across the country. I’m passionate about helping them become more profitable, reduce chaos, and build valuable businesses they can eventually sell. This industry is chaotic by nature, and my goal is to help bring as much clarity and control to it as possible.

Now, back to DSO.

What Do You Do About It?

1. Bill Faster

I can’t tell you how many times I talk to owners who take days, weeks, or even over a month to send out billing for work that’s already complete. That can’t happen. As the leader, you set the standard.

In my world, the standard is simple: billing goes out within 24 hours of job completion or phase completion. If a job spans multiple months, you still bill promptly at each phase.

How do you expect to get paid if you don’t send the invoice?

If you’re thinking the 24-hour standard is impossible, book a call with me. I’ll show you how it’s absolutely achievable.

2. Consistent Collection Effort

This sounds obvious, but it’s where many companies fall short. You need to contact every account that owes you money every week. Yes, every week. That’s how money shows up.

Email, letter, text, phone call. Maybe one, maybe two, maybe all four. And every attempt must be documented in your CRM.

I often hear, “We follow up regularly.” Then I ask to see the CRM activity notes. Most of the time, the notes are weak and the contact is sporadic. That’s not a system. That’s wishful thinking.

Weekly effort on every account. Non-negotiable.

3. Hold a Weekly AR Meeting

I know what you’re thinking. Another meeting?

Yes. You need a 30-minute weekly AR meeting to review accounts and confirm that collection efforts are happening. As a leader, you can’t just assign the task and assume it’s getting done. You have to inspect what you expect.

If you need a simple agenda for this meeting, I’m happy to share one.

The Must-Have: One Person Owns the Number

This is the most important piece. One person must own the DSO number.

If you’re a small team, it may be the person doing collections. In a larger organization, multiple people may touch AR, admin, sales, production, bookkeeping. Even then, one person must own the number.

That person becomes the driver. The cheerleader. The one who is energized about pushing that number lower and lower.

Why This Matters

Lower DSO means better cash flow. Better cash flow means less stress. And less stress means you sleep better at night.

If you need help implementing any of this, don’t hesitate to book a call. There’s no pressure. I’m happy to help you work through roadblocks and identify practical next steps.

Let’s get your DSO number down and bring a little more peace of mind to your business.

See you in the next video.