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. Do you need help managing credit and collections?

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Bad Debt Credit and Collections DSO Days Sales Outstanding 130

Your Virtual Credit Manager

JANUARY 23, 2024

The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. We are currently offering 33 percent off our standard small business consulting rates. What do you need help doing?

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Credit Application Bad Debt Bankruptcy Credit Scoring 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.

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

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

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!

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

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

Your Virtual Credit Manager

JANUARY 17, 2023

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. Readers of Your Virtual Credit Manager now have access to sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit.

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Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

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.

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Credit and Collections DSO Deductions Accounts Receivable (AR) 130

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?

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Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 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. Any enterprise extending credit to another business needs to have real treasury expertise.

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Accounts Receivable (AR) Bankruptcy Bad Debt Credit and Collections 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. In small companies, this may occur due to a lack of credit analysis skills.

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

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Bad Debt Credit and Collections Accounts Receivable (AR) Third Party Collections 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. To continue reading and learn nine areas of focus for supercharging your collection process, you must be a paid subscriber to Your Virtual Credit Manager.

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

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.

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Credit Scoring Credit and Collections Bad Debt Credit Risk 130

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. After all, credit and collections is essential to the performance of your order-to-cash (O2C) process and cash conversion cycle.

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

Your Virtual Credit Manager

FEBRUARY 28, 2023

Your Virtual Credit Manager (YVCM) previously published an article discussing the pros and cons of Prompt Payment Discounts. However, at this point in time there are other factors in play that favor the use of discounts to encourage earlier payment by your customers. This is a subject that has valid arguments for and against.

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Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

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.

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DSO Credit and Collections Bad Debt Collection Effectiveness Index 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. The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. What do you need help doing?

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Debt Collections Collector Credit and Collections Bad Debt 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

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Getting Started .

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AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Your Virtual Credit Manager

JANUARY 9, 2024

Then last week we looked at credit hold best practices. 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.

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

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DSO Credit and Collections Collection Effectiveness Index Bad Debt 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. Buy Credit Reports When Is it Time to Automate Collections?

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Credit and Collections Past Due Invoices Bad Debt 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. it just might help them collect faster and pay you sooner.

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AR Metrics DSO Credit and Collections Accounts Receivable (AR) 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. Cash is king.

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DSO Credit and Collections Bad Debt AR Aging 130

Gaviti

JULY 11, 2024

Benefits of Accounts Receivable Automation Software Whether your goal is to automate the collections process with accounts receivable automation software or scale it as your company grows,you’ll want to look for a solution that offers the most benefits for your business. Gaining better visibility into the A/R process.

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DSO AR Automation Credit and Collections Bad Debt 52

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

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. Credit management and monitoring.

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

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.

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Deductions Credit and Collections DSO Accounts Receivable (AR) 130

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. Here again, work the accounts in descending order of annual revenue.

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

Gaviti

FEBRUARY 6, 2023

As accounting processes continue to evolve, it’s becoming increasingly clear that harnessing the power of technology can help businesses streamline their operations and make more informed decisions. Below, we’re reviewing some of the top accounts receivable challenges in 2023 and offering quick ways to shore up your collections process.

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AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

Your Virtual Credit Manager

JUNE 20, 2023

Special Offer: On June 26, 2023, at 1PM EDT, David Schmidt will be leading a live webinar covering “ Strategic Collections: Process Efficiency and Tactics to Drive Superior AR Performance.” In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset.

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Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

NOVEMBER 29, 2022

In fact, most SMBs should look into using Collection Agencies to not only maximize the recovery of Accounts Receivable (AR) at high risk of never being collected, but to collect all old receivables. Your credit application should include all this information.

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Credit and Collections Accounts Receivable (AR) Default Collector 130

Your Virtual Credit Manager

MARCH 26, 2024

In other words, Portfolio Monitoring involves looking out for external factors that affect your customers and the distribution of risk in your accounts receivable (AR) portfolio. 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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