Remove Accounts Receivable (AR) Remove Bad Debt Remove Days Sales Outstanding
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Top 10 Strategies for Reducing Days Sales Outstanding (DSO)

Your Virtual Credit Manager

How was your accounts receivable (AR) performance last year? This is a very important question because AR is typically one of the top two or three largest assets for a B2B vendor. The primary way most companies measure AR performance involves looking at the Days Sales Outstanding (DSO) metric.

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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions.

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Are Your Collection Efforts Getting the Priority They Deserve?

Your Virtual Credit Manager

billion in annual sales was dissatisfied with the management of its Accounts Receivable (AR). Days Sales Outstanding (DSO) was at 63 days on predominantly Net 30 day terms. It is also another example that the fundamentals of good AR Management never go out of style!

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Misalignment Between Credit and Sales Spells Trouble

Your Virtual Credit Manager

Wen that happens accounts receivable (AR) performance also tends to suffer. Increased Bad Debt : Inadequate credit checks can result in over extending credit to high-risk customers, leading to slow payments and ultimately bad debt write-offs.

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How Do You Keep Track of Accounts Receivable?

Emagia

Managing accounts receivable (AR) is crucial for maintaining a healthy cash flow and ensuring the financial stability of a business. Effective tracking of AR involves implementing clear processes, utilizing appropriate tools, and regularly monitoring key performance indicators (KPIs). What is Days Sales Outstanding (DSO)?

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

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11 Signs Your AR Portfolio May Be at Risk

Your Virtual Credit Manager

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.

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