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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. Calculate the total credit sales made during the same period.

DSO 130
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Accounts Receivable Credit or Debit: A Comprehensive Guide

Emagia

Understanding the nuances of accounts receivable (AR) in accounting is crucial for maintaining accurate financial records and ensuring effective cash flow management. This aligns with the accounting equation, as an increase in assets (debit) corresponds with an increase in equity through revenue (credit).

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7 Strategies to Reduce DSO and Improve Cash Flow

The Esker Blog

And after years of supplier shortages, drastic demand fluctuations, increased operating costs and liquidity pinches, finance leaders are prioritizing goals associated with reaching the lowest DSO possible and quickly recovering payment on accounts receivable (AR).

DSO 98
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What is Accounts Receivable Process Cycle? A Comprehensive Guide

Emagia

The Accounts Receivable (AR) Process Cycle is a fundamental component of a company’s financial operations, encompassing the series of actions taken to manage and collect payments owed by customers for goods or services provided on credit. Why is the accounts receivable process important?

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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.

DSO 130
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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

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.

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Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

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