Remove Accounts Receivable (AR) Remove AR Metrics Remove Credit and Collections
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Is It Too Late to Achieve Your End-of-Year DSO Goals?

Your Virtual Credit Manager

Chances are, there is a lot that needs to be done in terms of accounts receivable (AR) management between now and December 31st, especially if you are short of your Days Sales Outstanding (DSO) goals. Anything less, and you are wasting valuable time. That’s the bad news.

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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

Since payment of Accounts Receivables (AR) is the primary source of regular cash inflows for most companies, you need to also track your AR to not only maintain its health as well as to better manage it and ensure maximum cash inflow. Why Are Metrics Needed if You Have an AR Ledger?

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Moving Beyond DSO

Your Virtual Credit Manager

(Photo by Carlos Muza on Unsplash ) A Framework for Choosing Suitable AR Metrics Businesses should carefully assess their specific needs, objectives, and operating context when selecting metrics for accounts receivable (AR) performance measurement. Like any metric, DSO has limitations.

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Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

Accounts Receivable (AR) is among the three largest assets on most companies’ books — inventory along with plant and equipment are the other two. AR is also the primary source of cash to fund daily operations. For example, if collections are constant and sales are rising, DSO will increase.