Average Days Delinquent Bad Debt DSO 
Gaviti
FEBRUARY 4, 2025
Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many traditional KPIs, like DSO, are not always a good indicator of collection success. Many companies use ADD (Average Days Delinquent) or look at the ratio of open invoices to overdue invoices.
Gaviti
NOVEMBER 24, 2024
That means your accounts receivable team will want to do everything in its power to increase cash flow and reduce your DSO. Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance.
Gaviti
APRIL 22, 2025
Specific: Clearly define the objective, such as reducing the average days sales outstanding (DSO) by a certain percentage. Reduce Days Sales Outstanding (DSO): Objective: Decrease the average number of days it takes to collect payments, thereby improving cash flow.
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