How to Reduce Your DSO from 45 Days to 2 Days

By Billifier Team January 9, 2026 6 min read

DSO stands for "Days Sales Outstanding." It's the number of days it takes from when you invoice a customer until you get paid.

For most HVAC contractors, DSO is 45 days.

For contractors using Billifier, DSO is 2 days.

That's a 43-day difference. And it changes everything.

Why DSO Matters

DSO is one of the most important metrics in your business. Here's why:

If your monthly revenue is $100K and your DSO is 45 days, you're carrying $150K in unpaid invoices at any given time. That's cash tied up. Cash you can't use to pay your team. Cash you can't use to buy parts. Cash you can use to grow your business.

If you reduce your DSO to 2 days, you're only carrying $6,700 in unpaid in That frees up $143,300 in cash flow.

That's the power of reducing DSO.

The 5 Steps to Reduce Your DSO

Step 1:

Automate Your Invoicing

Most contractors spend 30+ minutes per invoice. That's 10+ hours per week That's 40+ hours per month. That's time you could be spending on your busi

With Billifier, you create invoices in 60 seconds. HVAC-specific templates Auto-filled customer info. One-click send.

Result: Invoices go out immediately. Customers see them right away. Payment process starts immediately.

Step 2:

Make Payment Easy

If customers have to write a check, you're adding 5-10 days to your DSO. Checks get lost. Checks take time to deposit. Checks take time to clear.

With Billifier, customers can pay online. Credit card. ACH. Financing. Multiple options. Payment takes 2 minutes.

Result: Customers pay immediately. You get paid in 2 days.

Step 3:

Send Payment Reminders

Some customers forget. Some customers procrastinate. Some customers need a reminder.

With Billifier, you can set up automatic payment reminders. After 3 days, send an email. After 7 days, send an SMS. After 14 days, send another emai

Result: Customers remember. Customers pay faster. Your DSO drops.

Step 4:

Offer Incentives for Early Payment

Some customers will pay immediately if you give them a discount. A 2% discount for payment within 5 days is often worth it.

Why? Because if your profit margin is 20%, a 2% discount is worth it to get paid 40 days faster. That's $143K in cash flow freed up.

With Billifier, you can set up automatic discounts. Customers see the discount if they pay within 5 days. They're incentivized to pay fast.

Result: Customers pay faster. Your DSO drops even more.

Step 5:

Follow Up on Unpaid Invoices

Some invoices don't get paid. Customers go dark. You don't know what's hap

With Billifier, you can see which invoices are unpaid. You can see when customers opened the invoice. You can see if they clicked the payment lin You can follow up proactively.

Result: You catch unpaid invoices early. You follow up before it becomes a

Real Results

Here's what contractors are seeing when they reduce their DSO:

43 days

DSO reduction

From 45 days to 2 days

$143K

Cash flow freed up

On $100K monthly revenue

10+ hrs

Time saved per week

On invoicing and follow-up

20%

Payment rate increase

More customers paying online

Ready to Reduce Your DSO?

Join 500+ contractors who've reduced their DSO from 45 days to 2 days.

No credit card required. See the difference immediately.