Is lowering my company's DSO from 50 to 40 any good?

Question

When they hired me, DSO was over 50. Now it's 40 and it's been that way for a year. Should I hit the controller up for a big raise?

Answer 1

There are many factors. Was it YOUR work that brought the DSO down? Or maybe some big customer finally made a big payment on your watch, but it was through no particular effort of yours.

Also, is 40 good for your industry? Did you take your company from a "D" to a "C+"?... or from a "B" to an"A"? That makes a difference.

Only you can assess those kinds of factors. But you know what? No matter what, 40 is a lot better than 50 -- congratulations, and continued good success.

Answer 2

It is an improvement in cash flow, certainly.  Whether that generates enough of a benefit that you deserve a raise depends on a lot of factors, such as whether you are solely responsible for the file, how large the cash flow difference is, etc etc.

If you are involved in this aspect, it's certainly a mark in your favor, and you should bring it up in salary discussions.  How that goes is a matter for the future.