article thumbnail

The Best Accounts Receivable Reporting Software Solutions of 2025

Gaviti

Track A/R performance metrics and KPIs such as collection rates, total A/R, DSO, customer risk, collective effectiveness index (CEI) and accounts receivable turnover ratio (ART). DSO , collection effectiveness index), cash flow forecasting, customer payment behavior analysis, and dispute and deduction tracking.

article thumbnail

How Healthy Is Your Accounts Receivable?

Your Virtual Credit Manager

Subscribe now Days Sales Outstanding (DSO) From a credit perspective, DSO isn’t our favorite metric, but it is a standard used by accounting and finance professionals to reflect receivables turnover. Even so, we still recommend plotting the count-back method for calculating DSO against sales volume and AR balances.

DSO 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Automate the Collection Process to Eliminate Manual Tasks

Gaviti

Although different A/R solutions deliver different metrics, cash balance and days sale outstanding only scratch the surface of measuring performance. Additional metrics to consider include the number of outstanding receivables, accounts receivable aging, customer churn rate, and the percentage of late payments.

article thumbnail

Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

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. As the saying goes, you can’t manage what you don’t measure.

DSO 130
article thumbnail

Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

Are you able to collect invoices on all of the revenue your business generates? What are the average days sales outstanding? A/R turnover ratio: This measures how quickly you collect receivables. Collection effectiveness index: This measures how well you collect payments from customers.

article thumbnail

Say Goodbye to Manual Work: B2B Accounts Receivable Automation

Grit

Advanced analytics can help businesses track key performance indicators (KPIs) such as days sales outstanding (DSO), collection effectiveness index (CEI), and average payment period.

article thumbnail

Accounts Receivable Automation Best Practices

Gaviti

These reports not only help your A/R and finance team gain visibility of the collections team and individual team members, but allows for transparency across all other teams and stakeholders. Reduce Your DSO Days sales outstanding is one of the most important metrics for determining the effectiveness of collections efforts.