Collection Effectiveness Index Days Sales Outstanding Default 
Your Virtual Credit Manager
AUGUST 29, 2023
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.
Gaviti
NOVEMBER 29, 2022
Days Sales Outstanding. This metric measures how long a company takes to collect on its invoices. Collection Effectiveness Index. The CEI measures how well a company’s collection efforts are working. The credit manager determines who to extend credit to and under what conditions.
Gaviti
APRIL 22, 2025
Implementing SMART goals in A/R ensures that teams have a focused direction, facilitating improved efficiency and effectiveness in managing receivables. Specific: Clearly define the objective, such as reducing the average days sales outstanding (DSO) by a certain percentage.
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