Remove Average Days Delinquent Remove Bad Debt Remove Days Sales Outstanding
article thumbnail

Top Accounts Receivable Strategies for 2025

Gaviti

Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many companies use ADD (Average Days Delinquent) or look at the ratio of open invoices to overdue invoices. Reassess what data you are using to measure success.

article thumbnail

How to Automate the Collection Process to Eliminate Manual Tasks

Gaviti

Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance. Using the real-time data, you can more easily adjust credit limits effectively to proactively reduce risk of late payments, bad debt, and write-offs.

article thumbnail

Top 8 SMART Goals and Cutting-Edge Technologies to Transform Accounts Receivable

Gaviti

Specific: Clearly define the objective, such as reducing the average days sales outstanding (DSO) by a certain percentage. By meticulously examining outstanding receivables, companies can set strategic accounts receivable (A/R) goals that enhance financial stability and operational efficiency.