Remove Bad Debt Remove DSO Remove Online Credit Application
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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

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.

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AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

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.

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The Importance of the Accounts Receivable Aging Report

Gaviti

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Track a range of traditional KPIs such as Total A/R, DSO, collections rate, and customer risk in addition to unique smart KPIs. Credit management and monitoring. Customer invoice distribution.