Remove Bad Debt Remove Current Receivables Remove Days Sales Outstanding
article thumbnail

11 Signs Your AR Portfolio May Be at Risk

Your Virtual Credit Manager

Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A growing volume of receivables overdue by more than 90 days indicates you are having severe challenges collecting payments before then, posing a significant risk of write-offs or bad debts.

Bad Debt 130
article thumbnail

Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

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