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Ensure Buy-In From Key Stakeholders After you understand your collections team’s needs, you’ll need to present them to your CFO and any other important stakeholders to get them on board. Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance.
ADD (AverageDaysDelinquent) Next, we have the ADD (AverageDaysDelinquent) metric. This KPI measures the number of days that a payment is overdue, calculated by subtracting the BPDSO (Best Possible Days Sales Outstanding) from the DSO (Days Sales Outstanding).
The A/R team screen presents relevant KPIs for each user, giving controllers, AR managers, and VP of finance a full picture of their team’s performance. This KPI is calculated by dividing the current accounts receivable by billed revenue and multiplying that number by the number of days.
AverageDayDelinquent. The averagedaydelinquent measures how long it takes customers to pay their invoices. The data A/R dashboards present can help managers make informed decisions about payment plans, late fees, and other aspects of the collections process.
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