Remove Accounts Receivable (AR) Remove Article Remove Deductions
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Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

The Customer Delinquency Challenge Successful accounts receivable (AR) management involves minimizing past due balances to ensure steady cash in-flows and limit bad debt losses. This was discussednin a previous article: Big Company Red Flags You Can't Afford to Miss.

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Are You Managing Your Receivables with the End of the Year in Mind?

Your Virtual Credit Manager

Your accounts receivable (AR) and cash balances as of December 31, 2023, are very important numbers. Share First, Clean Out the Garbage During the course of a year, your AR will accumulate partially paid invoices, payments that have not been applied or that have been misapplied, debit memos, and credit memos.

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Resolve to Be More Proactive in 2024

Your Virtual Credit Manager

Two weeks ago we recapped the three most read articles from 2023: identifying red flags, understanding why customers pay late, and the secrets of successful collectors. From a credit management perspective, these are largely reactive topics. Then last week we looked at credit hold best practices. There is nothing wrong with that.

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Four Goals Guaranteed to Improve Cash Flow

Your Virtual Credit Manager

If you are an executive at a small or mid-sized business, chances are you are in the process of putting together a budget for 2024, or have already done so. Maybe you have factored in an incremental improvement in DSO, but how much thought have you given to how you are going to meet that budgeted goal?

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Is Your AR Generating All the Cash Flow It Should?

Your Virtual Credit Manager

Effectively managing accounts receivable (AR) is essential for a company's financial well-being. Poor receivables performance affects cash flow, and it is no secret that cash flow problems are the leading cause of business failures. Plus, you get full access to our growing archive of over 100 articles!

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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

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 accounts receivable (AR) performance. If DSO is rising, you are falling behind.

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The Imperative for Modernizing Trade Credit

Your Virtual Credit Manager

It’s critical you identify inefficiencies by analyzing cash conversion cycles, accounts receivable cycles, credit risk profiles, and payment histories. That may seem like a lot, and it is, but the WSJ article recommends focusing on three main areas in order to implement change in longstanding processes.