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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

But continually high ADD scores across clients may indicate poor collection efficiency on your side. 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.

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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. 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.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. However, days sales outstanding are subject to a range of factors and targets should always be based on the wider context of the business and industry. Get a demo today!

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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? 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.

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Unlocking the Power of A/R Analytics and Dynamic Reporting

Gaviti

A/R analytics aggregate information from multiple sources and visualize key business indicators such as customer payment trends or days sales outstanding. Organizations focus heavily on the days sales outstanding, but additional options exist. Book a demo to get started.

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How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Here are some of the most important ones to monitor: Collection effectiveness index. Days sales outstanding. Average days delinquent. Book your Gaviti demo to get started. Analyze Cash Flow Metrics Regularly. CFOs should keep an eye on key performance indicators. Accounts payable aging.

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5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

Book your demo here to get started. Best of all, Gaviti connects to any ERP, even those custom-built by your team, allowing you to assign different profiles and roles for each user – without the need for involvement from IT. Want to learn more about how to use Gravity for faster receivables at scale?