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Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance. Consider tracking A/R performance metrics that include best possible DSO , averagedaysdelinquent (ADD), collectiveeffectivenessIndex (CEI), and accounts receivable turnover ratio (ART).
Success Indicators: Reduced BadDebt: Lower instances of non-payment or defaults. A higher ratio signifies efficient credit policies and collection processes. CollectionEffectivenessIndex (CEI): Evaluates the effectiveness of collection efforts over a specific timeframe.
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