Your Virtual Credit Manager

AUGUST 29, 2023

The point is, if DSO is rising, you need to check to determine if collections are the problem. Receivables Are Getting Older: Your AR aging report categorizes outstanding invoices by their age. If a significant portion of your receivables are in the "overdue" categories (e.g.,

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

APRIL 2, 2024

You should also segment your AR portfolio to see how risk is distributed by things like customer purchasing volume, distribution channel, industry type, geographic region, AR aging bucket, and so forth. This ensures that cash is available for ongoing operations and investments, reducing reliance on external financing.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Gaviti

APRIL 18, 2024

What Is an AR Aging Report? As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (A/R) aging report. AR aging reports provide concrete information that can be used to take action. An aging report also analyzes how your customers’ companies work.

AR Aging 52

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

Your Virtual Credit Manager

DECEMBER 6, 2022

Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order. Without effective AR management, your cash flow is subject to entropy as the AR ages, as well as to the shocks caused by customer defaults. This software firm did not actively manage its AR.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

JANUARY 9, 2024

Segmenting your receivables can be based on any number of criteria: industry type, distribution channel, customer risk rating or score, credit limit, AR aging and so on. While these are all useful as a secondary segmentation, the place you want to start is with customer annual purchases from your firm.

Credit and Collections 130

Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

JUNE 20, 2023

In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. Tighten monitoring and control over your larger high risk customers — This will help eliminate or greatly reduce large bad debt losses that can seriously harm your cash flow.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20