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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. Traditionally, a low DSO indicates that your company has capital available and is in good financial standing. This includes both current, past and overdue invoices. monthly, quarterly or annually).

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

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. But note that CEI is more accurate when measuring collections in shorter periods.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

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. For example, since each company has different payment terms (e.g,

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

KPIs for Accounts Receivables Collections Analysis When reporting on an accounts receivable analysis to the A/R team or other departments within your organization, there are different key performance indicators you can use to measure the health of your accounts receivable. The most common is DSO. Collections analytics.

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Unlocking the Power of A/R Analytics and Dynamic Reporting

Gaviti

Review the following: Days sales outstanding: DSO measures the average number of days it takes for customers to pay their invoices. A/R teams prefer a lower DSO because it indicates customers are paying invoices more quickly. Lower DSOs imply that companies have more cash to invest in growth opportunities and expanding operations.

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How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Discrepancies between cash flow and DSO. Here are some of the most important ones to monitor: Collection effectiveness index. Book your Gaviti demo to get started. Managers can use that information to address these and other pressing problems: Rising interest rates. Supply chain disruptions. Higher labor costs.

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

Gaviti

Book your demo here to get started. Best of all, Gaviti connects to any ERP, even those custom-built by your team, allowing you to assign different profiles and roles for each user – without the need for involvement from IT. Want to learn more about how to use Gravity for faster receivables at scale?