Remove AR Metrics Remove Credit Management Remove DSO
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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. Your Virtual Credit Manager is a reader-supported publication. That’s the bad news.

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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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Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

Photo by Isaac Smith on Unsplash There are numerous metrics used to monitor the health, magnitude and risk profile of the AR asset. This article focuses on one widely used metric, Days Sales Outstanding (DSO) and the best ways to understand it. The key with DSO is to pick one method and use it consistently.