Gaviti

APRIL 11, 2024

Are you able to collect invoices on all of the revenue your business generates? What are the average days sales outstanding? How much bad debt does the company have, and how has this changed over time? Collection effectiveness index: This measures how well you collect payments from customers.

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. As the saying goes, you can’t manage what you don’t measure.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

FEBRUARY 21, 2023

If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses. Even so, we still recommend plotting the count-back method for calculating DSO against sales volume and AR balances. Here’s our recommendation for three key metrics to track.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Grit

MAY 26, 2024

This speed improves cash flow and reduces the risk of late payments and bad debt. Advanced analytics can help businesses track key performance indicators (KPIs) such as days sales outstanding (DSO), collection effectiveness index (CEI), and average payment period.

Collection Effectiveness Index 90

Collection Effectiveness Index Days Sales Outstanding Credit and Collections Bad Debt 90