This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
What are the average dayssalesoutstanding? Are you offering discounts for early payment? How much baddebt does the company have, and how has this changed over time? Consider these additional KPIs: Baddebt ratio: This measures the monetary value of receivables you believe you cannot collect.
Although different A/R solutions deliver different metrics, cash balance and dayssaleoutstanding only scratch the surface of measuring performance. Additional metrics to consider include the number of outstanding receivables, accounts receivable aging, customer churn rate, and the percentage of late payments.
Automating these processes not only enhances accuracy but also ensures timely collections, thereby improving cash flow and reducing the dayssalesoutstanding (DSO). By utilizing real-time data and analytics, companies can make informed decisions about extending credit, thereby minimizing the risk of baddebts.
By centralizing data in one place, you’ll allow for A/R and finance teams as well as marketing, sales and procurement to see metrics such as dayssalesoutstanding (DSO), unique KPIs and customer risk assessments. This can be especially helpful in maximizing cash inflows and minimizing baddebt.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content