Why DSO Compression Is the Agency Profit Multiplier
Agencies that compress days sales outstanding through automated invoicing and payment collection convert the same billable work into more usable cash, directly improving profitability without adding headcount. The leverage is not in the invoice itself but in the speed and reliability of the payment cycle, which becomes a competitive moat as clients expect faster, more transparent billing.
By InnovaAI ResearchPublished Updated
Why does it matter for agencies?
Agencies that compress days sales outstanding through automated invoicing and payment collection convert the same billable work into more usable cash, directly improving profitability without adding headcount. The leverage is not in the invoice itself but in the speed and reliability of the payment cycle, which becomes a competitive moat as clients expect faster, more transparent billing.