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Receivables Turnover vs. Days Sales Outstanding (DSO): What’s the Difference?

Gaviti

Two critical key performance indicators (KPIs) that help your accounts receivable team optimize collections are receivables turnover and days sales outstanding (DSO). These two KPIs aren’t perfect, but they inform decisions that ultimately determine how much cash you have available. It is often assessed only annually.

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What to Look For When Purchasing an Accounts Receivable Software

Gaviti

Advanced accounts receivables solutions offer autonomous invoice-to-cash platforms that include artificial intelligence (AI) capabilities as sanity checks for current decisions while at the same time offer suggestions to proactively optimize results. Cash Application.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

In this blog, you’ll learn about the most important cash flow metrics and cash application KPIs for CFO performance and their relationship to your overall financial planning. What is a Cash Application KPI? Average Days Delinquent (ADD) ADD is an essential cash flow metric.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO. An additional benefit: Payments through the gateway allow automatic invoice matching through a solution such as Gaviti’s Cash Application.

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Collections Forecasting – Key Things to Watch

Gaviti

Forecasting Accounts Receivable Collections Using DSO The easiest and most accurate way to forecast your accounts receivable is using days sales outstanding (DSO). Step 1: Sales Forecast The first step to predicting your accounts receivable is to determine a sales forecast. Cash Application.

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7 Best Accounts Receivable (A/R) Automation Software Vendors

Gaviti

If you’ve decided your business is ready to move to automating its A/R, you’ll want to find the best A/R automation software, also called invoice to cash software, that suits your needs. Cash application. For example, data from your cash application component can be used for more accurate credit management.

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

Are you able to collect invoices on all of the revenue your business generates? How quickly are customers paying their invoices? What are the average days sales outstanding? How much cash is the company gaining or losing? Cash application. Are you offering discounts for early payment?