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 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

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

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