Remove AR Metrics Remove Bad Debt Remove DSO
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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. Like any metric, DSO has limitations.

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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

Unfortunately, this is seldom the case, and by itself the AR Ledger provides very little in context for determining how your receivables are trending. As such, the AR metrics you track should be arrayed in a brief, easy to review reporting format. It is a measure of AR turnover.

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Top Accounts Receivable Strategies for 2025

Gaviti

Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Reassess what data you are using to measure success. Many traditional KPIs, like DSO, are not always a good indicator of collection success.

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What is the Best Accounts Receivable Management Software?

Emagia

A crucial aspect of maintaining a healthy cash flow is effective accounts receivable (AR) management. When AR processes are slow or disorganized, businesses face delayed payments, increasing the risk of bad debts and cash flow disruptions. Automating routine tasks will save time and reduce administrative burdens.

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