Your Virtual Credit Manager

NOVEMBER 12, 2024

Consequently, a large percentage of your accounts receivable (AR) is likely to derive from large firms. If you are not on the lookout for customer red flags, especially those raised by public firms and other large enterprises, you will be at increased risk for incurring bad debt losses.

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Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections 130

Your Virtual Credit Manager

FEBRUARY 20, 2024

(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. In fact, writing off bad debts will lower your DSO.

DSO 130

DSO Days Sales Outstanding Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

OCTOBER 15, 2024

Over the next couple of years, many more companies are expected to file bankruptcy chapter 7 liquidations, or simply close their doors for good. As a consequence, commercial accounts receivable (AR) portfolios are at an increasing risk of suffering bad debt losses.

Chapter 11 100

Chapter 11 Bad Debt Accounts Receivable (AR) Bankruptcy 100

Your Virtual Credit Manager

SEPTEMBER 5, 2023

Subscribe now Impact of Offering Discounts From the seller’s perspective, the effect on revenue from offering an early pay discount needs to be weighed against the potential reduction in Accounts Receivable (AR) carrying costs, bad debt and collection expenses. it just might help them pay you sooner!

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Default 130

Your Virtual Credit Manager

OCTOBER 31, 2023

Accounts receivable (AR) represent the amounts owed your business by your customers for the purchase of goods or services delivered on credit. Because AR constitutes one of largest assets on your books, proactively managing accounts receivable is crucial for the financial health of your business.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 130

Your Virtual Credit Manager

MARCH 21, 2023

Subscribe now Lessons to Be Learned Looked at from the perspective of somebody responsible for the management of a portfolio of accounts receivable (AR), the events surrounding the SVB collapse present a cautionary tale. The role of credit should not be focused on preventing bad debt losses, but rather maximizing profits.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bankruptcy Bad Debt Credit and Collections 130

Your Virtual Credit Manager

APRIL 18, 2023

So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset? to minimize the chance of bad debt loss. One way is to outsource the function. Then you have a cost/benefit comparison.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Third Party Collections 130

Your Virtual Credit Manager

FEBRUARY 13, 2024

Clearly, the level of Business Credit Risk is going to remain elevated as we move through 2024, bringing with it the potential for corresponding increases in bad debt and delinquency. The good news is that there are a number of actions you can take to reduce your loss exposure and shore up your accounts receivable (AR).

Bankruptcy 130

Bankruptcy Credit and Collections Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 23, 2024

We are currently offering 33 percent off our standard small business consulting rates. Learn More About YVCM Consulting Case Study: Portfolio Monitoring Pays Off Big-Time About 25 years ago, a credit manager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

JUNE 25, 2024

In order to maintain optimal cash flow, your accounts receivable (AR) portfolio needs to remain in good shape. That can be a constant battle because all the mis-steps made during the order-to-cash (O2C) process will accumulate in your AR, and given time, clog it up.

Bad Debt 130

Bad Debt Credit and Collections DSO Days Sales Outstanding 130

Your Virtual Credit Manager

FEBRUARY 28, 2023

It will reduce your Accounts Receivable (AR) balance and the associated elevated credit risk inherent in a larger AR. The reduction in revenue and margin, while painful, will be a smaller price to pay than a large drop in incoming cash and the higher risk of a larger, damaging, bad debt.

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

APRIL 11, 2023

Accounts Receivables (AR) require active management. Any O2C friction that results will ultimately have a negative affect on AR performance. Photo by Elisa Ventur on Unsplash When a company’s AR under-performs, the consequences are substantial. Business failures are the norm.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 130

Accounting Department

JANUARY 19, 2023

However, late payments and bad debts are a constant threat looming over an accounts receivables (AR) team. Accounts receivable reports are a key tool for businesses to manage their AR balances, forecast cash inflow, and stay on top of overdue payments.

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Accounts Receivable (AR) Bad Debt Small Businesses 83

Your Virtual Credit Manager

AUGUST 29, 2023

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.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The eternal challenge for collectors is that that there are typically more customers to be contacted than time and resources allow. 15 days or 120 days?)

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Credit and Collections Past Due Invoices Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 16, 2024

This also requires that your don’t set yourself further behind by making mistakes collecting your debts. Having your collection efforts back-stopped by a collection agency provides additional leverage to your efforts to get your customers to pay, avoid bad debt losses and preserve future sales to seriously delinquent customers.

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Debt Collections Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

FEBRUARY 21, 2023

That certainly holds true for business processes, including the management of your Accounts Receivable (AR) and the part it plays in the order-to-cash process. If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Your Virtual Credit Manager

AUGUST 6, 2024

The goal is not preventing bad debt losses but rather maximizing profits. If you should try to eliminate all bad debt losses, chances are you will forego sales to customers that will eventually pay. On the one hand, controlling bad debt and delinquency losses is critical.

Bad Debt 100

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 100

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. The credit plan will help your organization reduce bad debt and write-offs. You may want to reduce average outstanding receivables by 5% or decrease bad debt by 10% year-over-year.

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AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Your Virtual Credit Manager

FEBRUARY 6, 2024

As a small business owner or executive, managing accounts receivable (AR) and navigating through various credit decisions is an integral part of the job. From processing credit applications to negotiating payment plans, each AR activity you undertake requires thoughtful consideration.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 130

Your Virtual Credit Manager

APRIL 2, 2024

As such, they are just one of the many tools, such as credit reports, supplier and bank references, and financial statement analysis, that can help assess a business's creditworthiness. Commercial credit scores are often not as well understood as consumer credit scores such as FICO.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

SEPTEMBER 12, 2023

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. More About Purchasing Credit Reports 4.

Credit and Collections 130

Credit and Collections Bad Debt Accounts Receivable (AR) Deductions 130

The Esker Blog

DECEMBER 13, 2022

With the New Year right around the corner, it’s an opportune time for finance leaders to review, reassess and rethink their accounts receivable (AR) strategies. Talent attraction & retention Pace of digitalization & innovation Security risks & data breaches Increasing bad debt. Internally.

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Accounts Receivable (AR) DSO Bad Debt Invoice to Cash 97

Your Virtual Credit Manager

JUNE 20, 2023

In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. In our experience, sales and credit risk are never evenly distributed across a company’s accounts receivable (AR) portfolio, which raises opportunities.

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Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

JANUARY 9, 2024

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 accounts receivable (AR) management tasks that follow have a reactive component. There is nothing wrong with that.

Credit and Collections 130

Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. Cash that is tied up in AR can’t be used to pay your vendors or reduce the amount you are borrowing. As invoices age further past due, the probability of a bad debt loss increases. The list can go on.

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AR Automation Accounts Receivable (AR) Credit and Collections Bad Debt 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Specifically, Credit and Collections is responsible for approving new customers for credit terms and managing orders at the beginning of the O2C cycle, while also monitoring risks within the Accounts Receivable (AR) portfolio and collecting overdue payments, both of which are post-sale activities.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Lockstep

JULY 27, 2022

Increased customer loyalty: Offering credit terms can show customers that you trust them and are willing to work with them, which can lead to increased loyalty and repeat business. . However, there are also some risks associated with offering customer credit, including: . What are some credit policy options?

Credit Scoring 89

Credit Scoring Accounts Receivable (AR) Bad Debt AR Automation 89

Your Virtual Credit Manager

OCTOBER 2, 2024

Accounts Receivable (AR) reflect a promise of payment at a future date. Though a paper asset, AR competes with Property, Plant and Equipment as well as Inventory for being the largest line item on a company’s balance sheet. Who performs the Credit & Collection activities — you or the finance company?

Past Due Invoices 130

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

MAY 14, 2024

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. If actual DSO is 15-20% higher than your credit terms, you’re in good shape.

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AR Metrics DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

SEPTEMBER 13, 2022

Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. If not approved, there should be an attempt to collect the disputed amount to avoid diluting profits, and if not collected, the deduction should be cleared by a bad debt write-off.

Deductions 130

Deductions Credit and Collections DSO Accounts Receivable (AR) 130

Your Virtual Credit Manager

SEPTEMBER 17, 2024

Photo by Willian Cittadin on Unsplash ) Neglecting collections can also lead to longer payment cycles, strained client relationships, and an increase in bad debt. In addition, it is likely 40% to 50% of your customers purchase in small volumes that cumulatively only account for about 5% of your sales.

Credit and Collections 100

Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 100

billtrust

NOVEMBER 1, 2022

The primary goals of accounts receivable The best KPI for accounts receivable Ten AR optimization goals you should accomplish How to get paid faster with key collection strategies How accounts receivable automation can eliminate manual tasks. Bad debt expense.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

Emagia

NOVEMBER 28, 2023

Key Gains of Autonomous Finance Enhanced Productivity and Efficiency: Automating tasks in accounts receivable (AR), accounts payable (AP), and reconciliation processes reduces, if not eliminates, errors that are commonplace where manual processes still dominate a businesses’ finance functions.

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Accounts Receivable (AR) Bad Debt Order to Cash 64

Your Virtual Credit Manager

APRIL 4, 2023

With a growing number of experts predicting a recession to hit later this year, and inflation and interest rates remaining at elevated levels, squeezing every dollar out of your investment in Accounts Receivable (AR) is more important than ever.

Past Due Invoices 100

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 100

Gaviti

APRIL 18, 2024

As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (AR) collections aging report. What Is an AR Aging Report? This ensures your invoicing processes are aligned with their accounts payable. Get a demo today.

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AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52