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

Your Virtual Credit Manager

Now that we are past the mid-point of November, the end of the year is zooming into focus. 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.

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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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“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. It is a measure of AR turnover.

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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. and then multiplying that figure by the number of days in the period you are using.

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Improving Your Dunning Strategy and Recovery Rate

Gaviti

In particular, we’re seeing automation become the norm in accounts receivable (AR) functions, with teams seeing immediate results from streamlined collections processes and improved cash flow. . Monitoring AR metrics like days sales outstanding ( DSO ) is one of the best places to start.