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.,
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.
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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.
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.
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.
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.
Emagia
DECEMBER 30, 2024
Accounts receivable (AR) is a critical component of a company’s financial health, representing the outstanding invoices or money owed by customers for goods or services delivered but not yet paid for. Efficient management of accounts receivable ensures steady cash flow and minimizes the risk of bad debts.
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