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

DSO 130

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

Emagia

DECEMBER 30, 2024

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).

Accounts Receivable (AR) 40

Accounts Receivable (AR) Days Sales Outstanding Credit and Collections Bad Debt 40

The Esker Blog

JANUARY 3, 2023

Days Sales Outstanding (DSO) is a common measure for how long it takes a company to collect on an invoice. The goal is to reduce DSO to have the lowest DSO possible and quickly recover payment on accounts receivable (AR). DSO = ($125,000 / $950,000) × 365 days = 48.

DSO 98

DSO Accounts Receivable (AR) Credit and Collections Days Sales Outstanding 98

Emagia

MARCH 3, 2025

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?

DSO 40

DSO Days Sales Outstanding AR Reporting Credit and Collections 40

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. As the saying goes, you can’t manage what you don’t measure.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 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 is a measure of AR turnover.

AR Metrics 130

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.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130