Accounts Receivable (AR), Bad Debt and DSO

Moving Beyond DSO

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. Like any metric, DSO has limitations.

DSO

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

Are Your Collection Efforts Getting the Priority They Deserve?

Your Virtual Credit Manager

SEPTEMBER 3, 2024

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. Over the next eight months: DSO was reduced from 63 to 41 days $61 million in AR was converted to CA$H Bad debt expense was reduced by $2.2

Accounts Receivable (AR)

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

Misalignment Between Credit and Sales Spells Trouble

Your Virtual Credit Manager

FEBRUARY 27, 2024

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.

Accounts Receivable (AR)

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

11 Signs Your AR Portfolio May Be at Risk

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

Bad Debt Credit and Collections DSO Days Sales Outstanding

How Healthy Is Your Accounts Receivable?

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

DSO Credit and Collections Collection Effectiveness Index Bad Debt

“Must Have” Metrics for Receivables Management

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 is a measure of AR turnover.

AR Metrics

AR Metrics DSO Credit and Collections Accounts Receivable (AR)

Evidence It's Time to Adjust Your Collection Practices

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

DSO Credit and Collections Bad Debt Collection Effectiveness Index

Is Your O2C Process Optimized for Superior AR Performance?

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

Credit and Collections DSO Deductions Accounts Receivable (AR)

Sales Commissions Impact the Collection Process

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. The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent.

Credit and Collections

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

Don't Leave Converting Sales into Cash to Chance

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

DSO Credit and Collections Bad Debt AR Aging

Creating a Credit Plan

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). . The credit plan will help your organization reduce bad debt and write-offs.

AR Automation

AR Automation Bad Debt DSO Accounts Receivable (AR)

Rethinking Receivables (Part 1): 4 Strategies to Prioritize in 2023

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. Rethink processes.

Accounts Receivable (AR)

Accounts Receivable (AR) DSO Bad Debt Invoice to Cash

Is Your AR Management up to the Task?

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. There are multiple costs and vulnerabilities that emerge.

Bad Debt

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

Gleaning Actionable Insights from Credit Scores

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

Credit Scoring Credit and Collections Bad Debt Credit Risk

7 Best Accounts Receivable (A/R) Automation Software Vendors

Gaviti

JULY 11, 2024

By centralizing data in one place, you’ll allow for A/R and finance teams as well as marketing, sales and procurement to see metrics such as days sales outstanding (DSO), unique KPIs and customer risk assessments. Make better credit decisions, lower DSO, and reconcile payments with near perfection. Schedule a demo to learn more.

DSO

DSO AR Automation Credit and Collections Bad Debt

Effectively Collecting Receivables Is a Time Management Challenge

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?)

Credit and Collections

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

10 strategies for optimizing your accounts receivable to maximize your ROI

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)

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO

Are Your Profits Going Up in Smoke?

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

Deductions Credit and Collections DSO Accounts Receivable (AR)

The Importance of the Accounts Receivable Aging Report

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. Customer invoice distribution. Get a demo today.

AR Aging

AR Aging Credit and Collections Allowance for Doubtful Accounts Bad Debt

Top Accounts Receivable Challenges for 2023: Be prepared

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.

AR Automation

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding

Credit Management Source

Moving Beyond DSO

Are Your Collection Efforts Getting the Priority They Deserve?

Trending Sources

Misalignment Between Credit and Sales Spells Trouble

11 Signs Your AR Portfolio May Be at Risk

How Healthy Is Your Accounts Receivable?

“Must Have” Metrics for Receivables Management

Evidence It's Time to Adjust Your Collection Practices

Is Your O2C Process Optimized for Superior AR Performance?

Sales Commissions Impact the Collection Process

Don't Leave Converting Sales into Cash to Chance

Creating a Credit Plan

Rethinking Receivables (Part 1): 4 Strategies to Prioritize in 2023

Is Your AR Management up to the Task?

Gleaning Actionable Insights from Credit Scores

7 Best Accounts Receivable (A/R) Automation Software Vendors

Effectively Collecting Receivables Is a Time Management Challenge

10 strategies for optimizing your accounts receivable to maximize your ROI

Are Your Profits Going Up in Smoke?

The Importance of the Accounts Receivable Aging Report

Top Accounts Receivable Challenges for 2023: Be prepared

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