Gaviti

APRIL 3, 2024

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. Traditionally, a low DSO indicates that your company has capital available and is in good financial standing. It has $1 million in outstanding receivables but total sales of $1.5

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Your Virtual Credit Manager

FEBRUARY 21, 2023

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. The problem with DSO is that AR performance can be improving at the same time DSO is rising.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Gaviti

NOVEMBER 20, 2023

Most Accounts Receivable teams use DSO as the main KPI to measure their performance. 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.

Collection Effectiveness Index 52

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections 52

Gaviti

JANUARY 2, 2024

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.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding 52

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. If DSO is rising, you are falling behind.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Gaviti

APRIL 11, 2024

Are you able to collect invoices on all of the revenue your business generates? What are the average days sales outstanding? The most common is DSO. Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect. Collections analytics.

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Grit

MAY 26, 2024

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

Collection Effectiveness Index 90

Collection Effectiveness Index Days Sales Outstanding Credit and Collections Bad Debt 90