Gaviti

JANUARY 2, 2024

Collection Effectiveness Index (CEI) CEI compares receives collected in a given time period against the receivables available in that same period. Similar to DSO, this cash application KPI offers a broad measure of how effective your collection efforts are. (DSO

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding 52

Gaviti

NOVEMBER 20, 2023

To calculate traditional DSO , take the total A/R balance sheet, divide it by your total sales and multiply the quotient by the number of days in the period you want to measure. It’s a comparison of how much you were owed at the beginning of the period versus how much you actually collected during that same period.

Collection Effectiveness Index 52

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections 52

Your Virtual Credit Manager

AUGUST 29, 2023

If a significant portion of your receivables are in the "overdue" categories (e.g., 30, 60, 90+ days past due), it suggests that your collection efforts might not be keeping up with customer payment schedules. Your Collections Effectiveness Index is Low : If you are measuring your CEI every month, any decline should be a red flag.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Gaviti

APRIL 3, 2024

Best Possible DSO Formula The formula for Best Possible DSO is: (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period 7 Strategies to Reduce DSO Since DSO reduction is such an important element of your accounting operations, many companies turn to tools such as DSO reduction software to assist them.

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52