Emagia

DECEMBER 3, 2024

Real-Time Insights and Analytics: Provides real-time dashboards and predictive analytics for cash flow, DSO, customer payment behavior, and credit risk. Reduces DSO, minimizes bad debt and write-offs with advanced credit risk and deductions management tools.

DSO 52

DSO Credit and Collections Bad Debt Payment Portals 52

Your Virtual Credit Manager

JANUARY 17, 2023

The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent. it just might help them pay you sooner! Revenue or Profits?

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

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. The problem with DSO is that AR performance can be improving at the same time DSO is rising. There are several ways you can calculate DSO. The opposite is also true.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Your Virtual Credit Manager

JUNE 25, 2024

Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A rising DSO indicates that your collections are not matching the rate of new sales, and if that goes on for any length of time, your cash flow will not be able to support the volume of your current business operations.

Bad Debt 130

Bad Debt Credit and Collections Days Sales Outstanding DSO 130

Your Virtual Credit Manager

SEPTEMBER 3, 2024

Days Sales Outstanding (DSO) was at 63 days on predominantly Net 30 day terms. Over the next eight months: DSO was reduced from 63 to 41 days $61 million in AR was converted to CA$H Bad debt expense was reduced by $2.2 Collection Prioritization Drives Performance Improvement A medical device manufacturer with $1.6

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

MARCH 14, 2023

Focus on the over 60 day past due AR balances to get the most bang for your collection buck This approach foregoes a huge cash flow opportunity (collecting AR that is under 60 days past due), and is not very effective at preventing bad debt (too little, too late). For more on collection efficiency, check out this article.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

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

Monthly: The Three Weekly Metrics listed above Days Sales Outstanding (DSO) – This metric expresses the level of AR as the number of days of sales that comprise your AR total. For example, if you sell on Net 30 day credit terms, and all your invoices were paid on the due date, your DSO would be 30 days.

AR Metrics 130

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

Your Virtual Credit Manager

FEBRUARY 27, 2024

Increased Bad Debt : Inadequate credit checks can result in over extending credit to high-risk customers, leading to slow payments and ultimately bad debt write-offs. Employ Shared Metrics and KPIs : Establishing common key performance indicators (KPIs) and metrics across departments fosters aligned objectives.

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

DECEMBER 6, 2022

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. So far so good, but this company had an Achilles heal.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Gaviti

FEBRUARY 4, 2025

Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many traditional KPIs, like DSO, are not always a good indicator of collection success. Consistency in credit processes reduces bad debt and fosters healthier customer relationships.

Average Days Delinquent 59

Average Days Delinquent Credit and Collections AR Metrics Accounts Receivable (AR) 59

Emagia

FEBRUARY 21, 2025

Managing these receivables effectively ensures timely cash inflows and reduces the risk of bad debts. Reducing Bad Debts: Timely follow-ups can minimize the chances of non-payment. Tracking accounts receivable is essential for maintaining cash flow, reducing bad debts, and enhancing customer relationships.

Days Sales Outstanding 40

Days Sales Outstanding DSO Bad Debt Credit and Collections 40

Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? The most common is DSO. Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect. What are the average days sales outstanding? What is the company’s financial position?

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

JANUARY 3, 2023

The client had been forced to layoff seven of their 16 credit department employees and were desperate to find a way to keep up with collections during their peak season and meet the aggressive DSO goals upper management had set. 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

Lockstep

JUNE 15, 2022

Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . The credit plan will help your organization reduce bad debt and write-offs. You may want to reduce average outstanding receivables by 5% or decrease bad debt by 10% year-over-year.

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

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

Your Virtual Credit Manager

APRIL 11, 2023

Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. Failure to monitor your receivables, and identify the emerging risks in your AR portfolio, leads to missed payments, increased bad debt write-offs, and reduced cash flow. An under performing AR.

Bad Debt 130

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

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

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

Emagia

JANUARY 27, 2025

When AR processes are slow or disorganized, businesses face delayed payments, increasing the risk of bad debts and cash flow disruptions. Reporting and Analytics Real-time reporting and analytics allow businesses to track AR performance metrics like Days Sales Outstanding (DSO), outstanding invoices, and overall collection efficiency.

DSO 40

DSO AR Metrics Accounts Receivable (AR) Days Sales Outstanding 40

Emagia

MARCH 3, 2025

Financial Stability : Reducing outstanding receivables minimizes bad debts and improves financial health. High Days Sales Outstanding (DSO) Regularly analyze DSO metrics and adjust credit policies accordingly. Late payments, invoice disputes, high DSO, and inefficient manual processes are common challenges.

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

The Esker Blog

DECEMBER 13, 2022

Talent attraction & retention Pace of digitalization & innovation Security risks & data breaches Increasing bad debt. Is your DSO longer than the industry average? Where should AR leaders focus their attention? Within the invoice-to-cash (I2C) process, there are many areas that AR leaders could focus on.

Accounts Receivable (AR) 97

Accounts Receivable (AR) DSO Bad Debt Invoice to Cash 97

Emagia

DECEMBER 30, 2024

By leveraging Emagia’s platform, businesses can improve efficiency, reduce days sales outstanding (DSO), and enhance overall financial performance. Effective management ensures timely cash inflows, reduces bad debts, and maintains healthy cash flow. Frequently Asked Questions Is accounts receivable a debit or credit?

Accounts Receivable (AR) 40

Accounts Receivable (AR) Days Sales Outstanding Credit and Collections Bad Debt 40

Your Virtual Credit Manager

APRIL 2, 2024

Optimizing Cash Flow: By assigning more aggressive collection strategies to higher-risk accounts, you can improve cash flow by reducing the average days sales outstanding (DSO) and accelerating the collection of outstanding receivables.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Emagia

JANUARY 2, 2025

Efficient AR management ensures that payments are collected on time, improving the companys liquidity and reducing the risk of bad debts. It represents a crucial part of a companys cash flow management. These tasks are often time-consuming, prone to errors, and require constant human intervention.

Accounts Receivable (AR) 40

Accounts Receivable (AR) Invoice Collections Cash Applicator Automated Cash Application 40

Your Virtual Credit Manager

SEPTEMBER 13, 2022

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. One company that took a Six Sigma approach to eliminating deductions realized a 15 percent improvement to DSO. Well, it’s not.

Deductions 130

Deductions Credit and Collections DSO Accounts Receivable (AR) 130

Emagia

FEBRUARY 20, 2025

Lower DSO (Days Sales Outstanding) Ensures quicker collections and better liquidity. Reduced Bad Debt Helps identify at-risk accounts early and take preventive measures. The main benefits include improved cash flow, reduced DSO, automated collections, enhanced financial visibility, and lower bad debt risk.

AR Automation 40

AR Automation Bad Debt DSO Days Sales Outstanding 40

Gaviti

JULY 24, 2024

Gain a holistic view of your A/R and collections status, including critical metrics such as DSO, total A/R, collections rate, and others that impact your cash flow. Stay ahead of credit risk by setting credit limits and getting credit risk alerts in real time to minimize impact on your cash flow and the likelihood of bad debt.

Credit and Collections 98

Credit and Collections Bad Debt Payment Portals Cash Applicator 98

TreviPay

OCTOBER 2, 2024

Despite this preference, many businesses struggle to offer trade credit to their buyers, due to cash flow strain and concern around growing DSO. We compensate your company in the event of a bad debt, but more importantly, we help you avoid bad debt in the first place.

Bad Debt 64

Bad Debt Credit and Collections DSO Transactions 64

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

TreviPay

FEBRUARY 17, 2025

Its a process that demands significant time and resources, from evaluating a prospects creditworthiness to creating and sending invoices, managing collections and dealing with bad debt. Executives dont have to manage bad debt or application fraud. Imagine a world where: CFOs never worry about accounts receivable.

Bad Debt 65

Bad Debt Days Sales Outstanding Order to Cash DSO 65

Emagia

FEBRUARY 20, 2025

Automating these processes not only enhances accuracy but also ensures timely collections, thereby improving cash flow and reducing the days sales outstanding (DSO). By utilizing real-time data and analytics, companies can make informed decisions about extending credit, thereby minimizing the risk of bad debts.

AR Automation 40

AR Automation Credit and Collections Cash Applicator DSO 40

Gaviti

OCTOBER 30, 2023

The ability to track and send reports related to Days Sales Outstanding (DSO), net accounts receivable, A/R turnover ratio, and other important metrics help you gain insights into the financial stability of a company.

Days Sales Outstanding 76

Days Sales Outstanding Invoice Collections Credit and Collections DSO 76

Gaviti

JULY 11, 2024

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 days sales outstanding (DSO), unique KPIs and customer risk assessments. Make better credit decisions, lower DSO, and reconcile payments with near perfection. Schedule a demo to learn more.

DSO 52

DSO AR Automation Credit and Collections Bad Debt 52

Gaviti

APRIL 24, 2024

Regardless of the details of how you set up your dunning workflow, however, you’ll know it’s successful when DSO improves. It also puts a standardized process in place for dealing with bad debt, including documentation in the event that legal action needs to be pursued or the business wants to claim it in taxes.

DSO 52

DSO Credit and Collections Bad Debt Days Sales Outstanding 52

billtrust

NOVEMBER 1, 2022

In short, they include three key objectives: maximizing cash flow , minimizing bad debt, and maintaining customer satisfaction. Minimizing bad debt , on the other hand, helps businesses to avoid write-offs and keep their bottom line healthy. Bad debt expense.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

TreviPay

JULY 20, 2023

This is important for businesses of all sizes, as it allows them to reduce DSO , eliminate bad debt and enable real-time buyer onboarding within weeks while their development team completes the full integration.

Bad Debt 52

Bad Debt DSO Transactions 52