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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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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.

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