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. If DSO is rising, you are falling behind. Collections is always playing a bit of catch up to sales.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

MAY 14, 2024

To continue reading and learn the daily, weekly and monthly AR metrics you should be tracking, you’ll need a paid subscriber to Your Virtual Credit Manager …our standard subscription is only $5 per month or $49 annually. Learn More About Credit Reports Please share this newsletter with your small business customers.

AR Metrics 130

AR Metrics DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

DECEMBER 6, 2022

This software firm did not actively manage its AR. The company ended up writing off millions of dollars in bad debt. Even worse, the company’s stock price was depressed because of the company’s high Days Sales Outstanding (DSO) , a common measure of AR management effectiveness. Cash is king.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

JANUARY 3, 2023

Email us to learn how the experts at Your Virtual Credit Manager can help you clean up your AR Ledger and increase cash flow by improving your Collection Process. During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Consequently, Days Sales Outstanding (DSO) increased by almost 50 percent with customer delinquency deteriorating so much that this supplier’s borrowing capacity under its asset-based credit facility was severely restricted. Poor credit approval and collection practices can single-handedly wreck DSO.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Getting Started . External and Supporting Data .

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? Are we offering the right amount of credit to customers based on their creditworthiness? The most common is DSO. Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect.

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

APRIL 2, 2024

To continue reading and learn the value of using commercial credit scores to rank the customers in your AR portfolio, as well as six ways to leverage customer rankings, you need to be a paid subscriber to Your Virtual Credit Manager.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The task is twofold: Optimizing cash inflows (and avoiding bad debt) confined by the number of requests for payment that can be made within a specified time period.

Credit and Collections 130

Credit and Collections Past Due Invoices Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

APRIL 11, 2023

To avoid these types of events you need to establish credit limits based on a customer’s creditworthiness, set parameters for approving orders for all customers both new and old, and then stick to the boundaries you have determined. There are multiple costs and vulnerabilities that emerge. An under performing AR.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 130

TreviPay

MARCH 20, 2023

Credit management is integral to accounts receivable management. Good credit management supports consistent cash flow, smooth payment collections, customer satisfaction, and much else. It covers multiple different smaller components involved in issuing, monitoring, and collecting credit.

B2B Credit 52

B2B Credit Credit Management Credit and Collections Days Sales Outstanding 52

Your Virtual Credit Manager

SEPTEMBER 13, 2022

Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. If not approved, there should be an attempt to collect the disputed amount to avoid diluting profits, and if not collected, the deduction should be cleared by a bad debt write-off.

Deductions 130

Deductions Credit and Collections DSO Accounts Receivable (AR) 130

Gaviti

NOVEMBER 21, 2024

Leverage data-driven decision-making to optimize collections strategies, reduce DSO, and improve cash flow. Credit management and monitoring. Get real-time credit risk alerts about customers with increased credit risk to minimize the impact on your cash flow and reduce the likelihood of bad debt.

Automated Cash Application 98

Automated Cash Application Credit and Collections Cash Applicator Deductions 98

Emagia

DECEMBER 3, 2024

Autonomous Finance Capabilities: Enables intelligent self-driving end-to-end processes for accounts receivable operations including credit management, billing, invoicing, collections, deductions, cash application, cash flow forecasting and treasury management. Key Features and Benefits for CFOs 1.

DSO 52

DSO Credit and Collections Bad Debt Payment Portals 52

Gaviti

OCTOBER 30, 2023

When traditional credit management and cash application is automated, it reduces the need for staff and makes the credit management and customer payment process more efficient. Your financial staff has rates of high turnover. You want to simplify a complex process that involves multiple stakeholders.

Days Sales Outstanding 75

Days Sales Outstanding Invoice Collections Credit and Collections DSO 75

Gaviti

JULY 11, 2024

Simplify workflows and improve A/R processes such as invoice distribution, tracking payments, credit management, bank reconciliation and dispute management. Simplify customer payment by offering multiple types of payment, including credit cards, debit cards, ACH transfers , electronic wallets, and more.

DSO 52

DSO AR Automation Credit and Collections Bad Debt 52

Emagia

OCTOBER 31, 2022

Why should credit management be automated. How important is the automation of credit management for business growth. Autonomous finance eliminates efficiency bottlenecks in finance operations such as credit management, accounts receivables, accounts payables, cash flow, budgeting, F&PA, and other financial processes.

Credit and Collections 59

Credit and Collections Bad Debt Credit Management DSO 59

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. Consider tracking A/R performance metrics that include best possible DSO , average days delinquent (ADD), collective effectiveness Index (CEI), and accounts receivable turnover ratio (ART).

Credit and Collections 52

Credit and Collections DSO Average Days Delinquent Collection Effectiveness Index 52

Emagia

FEBRUARY 5, 2023

Credit Management The starting point in the AR process is credit check, though that is part of broader OTC process. Having few customers with bad creditworthiness and track record or history on board can disrupt the entire AR management and cash flow of a company.

AR Automation 52

AR Automation Days Sales Outstanding DSO Credit and Collections 52

Gaviti

APRIL 18, 2024

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Why Automation Is Key to an Effective Accounts Receivable Aging Report Automation is well-established as a functional tool for efficient accounts receivable management. Credit management and monitoring.

AR Aging 52

AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52

TreviPay

APRIL 11, 2023

Outsource risk, and in doing so remove receivables from their balance sheet to improve/eradicate late payments and DSO. Financing With their global scale, and significant readily scalable banking facility, TreviPay irradicated the retailer’s DSO, ensuring payment within 2 days from the date of each transaction, on time, every time.

DSO 52

DSO Bad Debt Credit and Collections Order to Cash 52

TreviPay

AUGUST 27, 2024

A higher turnover ratio means that companies are turning more outstanding payments into usable money, which leads to a healthier cash flow, high liquidity and demonstrates that the company is at a smaller risk of being in bad debts. What is a Good Accounts Receivable Turnover Ratio?

Credit and Collections 52

Credit and Collections Bad Debt Credit Sales DSO 52

Gaviti

FEBRUARY 6, 2023

Given the rising infation and interest rates, managing late payments should be a top priority for businesses in 2023. As a top area of focus, consider metrics like your days sales outstanding (DSO) rates and how small changes to processes can improve the accounts receivable cycle.

AR Automation 52

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

JSP Credit Management

NOVEMBER 15, 2021

However, and despite what the title of this blog may suggest, we have not decided to abandon credit management for a career in tourism or life coaching. These ageing buckets are really important for businesses to monitor the profile of their aged debt and produce targets and forecasts for cash collection.

Collector 52

Collector Credit and Collections Bad Debt DSO 52

Eagle Business Credit

MAY 2, 2024

Credit checks and risk assessments ensure that terms are aligned with customer reliability, reducing the likelihood of bad debts. This can be achieved by offering discounts for early payments, enforcing stricter credit terms, or using invoice factoring services to get immediate cash.

Days Sales Outstanding 40

Days Sales Outstanding Credit and Collections Bad Debt DSO 40