Gaviti

NOVEMBER 24, 2024

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.

Credit and Collections 52

Credit and Collections DSO Average Days Delinquent Collection Effectiveness Index 52

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? Are you offering discounts for early payment? A/R turnover ratio: This measures how quickly you collect receivables. How quickly are customers paying their invoices?

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

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. 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.

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

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.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Average Days Delinquent 52