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These types of reports include cash flow forecasting, aging reports, DSO calculations, and A/R performance. Track A/R performance metrics and KPIs such as collection rates, total A/R, DSO, customer risk, collectiveeffectivenessindex (CEI) and accounts receivable turnover ratio (ART). A/R performance.
It also gives companies the ability to move away from manual tracking in spreadsheets, to a real-time dashboard, which saves time and gives a full and reliable visualization of the current state of collections. So, how can using a collectiondashboard help, and why is it so indispensable as a growth tool?
Here’s the formula for Average Days Delinquent: ADD = Days Sales Outstanding (DSO) – Best Possible Days Sales Outstanding (BPDSO) Note the role of the DSO metric in this calculation. If you need help with this, check out how to calculate DSO. But note that CEI is more accurate when measuring collections in shorter periods.
Before you set up your analytics, decide what is important to you and make sure that you can customize your system or dashboard to highlight the statistics that you want to focus on. Review the following: Days sales outstanding: DSO measures the average number of days it takes for customers to pay their invoices.
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