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There are a myriad of issues that can affect collections. As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accountsreceivable (AR) performance.
From a credit management perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accountsreceivable (AR) management tasks that follow have a reactive component. There is nothing wrong with that. it just might help them pay you sooner!
Accountsreceivable (AR) is a critical component of a company’s financial health, representing the outstanding invoices or money owed by customers for goods or services delivered but not yet paid for. Efficient management of accountsreceivable ensures steady cash flow and minimizes the risk of bad debts.
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