Remove AR Metrics Remove Credit and Collections Remove Credit Management
article thumbnail

Is It Too Late to Achieve Your End-of-Year DSO Goals?

Your Virtual Credit Manager

Chances are, there is a lot that needs to be done in terms of accounts receivable (AR) management between now and December 31st, especially if you are short of your Days Sales Outstanding (DSO) goals. Photo by B C on Unsplash ) The biggest problem—there probably are not enough days left to get everything done.

DSO 100
article thumbnail

“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

Why Are Metrics Needed if You Have an AR Ledger? Metrics enable you to quickly check the condition of your AR (and cash inflow for the immediate future). Unfortunately, this is seldom the case, and by itself the AR Ledger provides very little in context for determining how your receivables are trending.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

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. Where do you need to improve?

DSO 130
article thumbnail

Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

DSO is criticized as large variations in monthly sales can drive large changes in the metric, as can extending payment terms. For example, if collections are constant and sales are rising, DSO will increase. Nevertheless, DSO remains a popular and widely used metric by analysts.