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. Collections is always playing a bit of catch up to sales.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Gaviti

NOVEMBER 29, 2022

This metric measures how long a company takes to collect on its invoices. A low DSO means customers are paying their invoices quickly, and a high DSO indicates that customers take a longer time to pay their invoices. Collection Effectiveness Index. Days Sales Outstanding.

Dashboards 52

Dashboards Average Days Delinquent Credit and Collections Cash Forecasting 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. A CEI close to 100% reflects optimal collection performance.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Average Days Delinquent 52