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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

30, 60, 90+ days past due), it suggests that your collection efforts might not be keeping up with customer payment schedules. When both sales and DSO are rising, checking your percentages past due will provide a good indicator that collections are lagging.

DSO 130
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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Collection Effectiveness Index (CEI) CEI compares receives collected in a given time period against the receivables available in that same period. Similar to DSO, this cash application KPI offers a broad measure of how effective your collection efforts are. (DSO

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How Healthy Is Your Accounts Receivable?

Your Virtual Credit Manager

Share Collections Effectiveness Index (CEI) The CEI provides a measure of collection effectiveness expressed as a percentage. The higher the percentage, the more effective your collection efforts. If not, the chances of being paid late or incurring a deduction are very high.

DSO 130
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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

A/R turnover ratio: This measures how quickly you collect receivables. Collection effectiveness index: This measures how well you collect payments from customers. Disputes and deductions. Collaborate between departments to resolve disputes effectively.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

This may include both individual and team collections performance KPIs, aging reports, collection effectiveness index (CEI), along with receivables turnover and best possible DSO. Have an effective process in place to deal with late receivables. Disputes and deductions. Cash application.

DSO 52
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5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. Having customers pay on time is one of the simplest ways to strengthen your cash flow.

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

Gaviti

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. Having customers pay on time is one of the simplest ways to strengthen your cash flow.