Your Virtual Credit Manager

JANUARY 30, 2024

Previously, decisions were largely left to the discretion of individual collectors, resulting in subjective and inconsistent approaches. Implementing a zero-tolerance collection policy for the smallest account segment (see Table #2) allows for a more streamlined and automated approach, reducing the collector's effort.

Credit and Collections 130

Credit and Collections Collector Accounts Receivable (AR) Days Sales Outstanding 130

Your Virtual Credit Manager

DECEMBER 6, 2022

Even worse, the company’s stock price was depressed because of the company’s high Days Sales Outstanding (DSO) , a common measure of AR management effectiveness. As you can see, there was a huge increase in the stock price commensurate with the reduction in DSO. After collecting your payments you still have work to do.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

APRIL 25, 2023

A ssign Collections to an Existing Employee : In this case you need to consider if the person you choose has the time and talent to be an effective collector. The bottom line was a 13 percent reduction in DSO over a 6 month period in conjunction with invoice accuracy rising above 90 percent.

Credit and Collections 130

Credit and Collections Past Due Invoices Collector Deductions 130

Onguard

FEBRUARY 23, 2023

CFOs and CEOs, are you familiar with DSO? While many businesses focus on improving their DPO (supplier side) and DOI (inventory holding) metrics to enhance their cash flow, the real impact can be found by examining your customer base and their payment habits, which is reflected in the DSO metric. How do you calculate DSO?

DSO 40

DSO Sales Weighted DSO Credit and Collections Collector 40

Your Virtual Credit Manager

NOVEMBER 1, 2022

The eternal challenge for collectors is that that there are typically more customers to be contacted than time and resources allow. It also will typically deliver a 10-20 percent improvement in Days Sales Outstanding (DSO) within six months to a year.

Past Due Invoices 130

Past Due Invoices Credit and Collections Bad Debt Accounts Receivable (AR) 130

Gaviti

JANUARY 2, 2024

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.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent Days Sales Outstanding DSO 52

JSP Credit Management

NOVEMBER 15, 2021

They also help collectors to plan their work, which usually is based on a working month, although quarter-ends and year-ends are important in credit management too, and if you’re an experienced collector then you may have used these buckets to form a strategy for your approach to collecting as much cash as possible throughout the month.

Collector 52

Collector Credit and Collections Bad Debt DSO 52

Gaviti

JANUARY 7, 2024

Netsuite enables collectors to record various phone conversations and emails with customers to help gather and consolidate collections data. They can also be sent from specific A/R collectors or with a body or subject line customized to specific situations (e.g., However, with multiple payment options (e.g., Recording collections.

Invoice to Cash 52

Invoice to Cash Credit and Collections Collector Deductions 52

Gaviti

JUNE 13, 2024

Many businesses rely on manual spreadsheets to manage their accounts receivables process, often with each individual collector only having information about his or her own accounts. With its ERP agnostic platform, customers have effectively improved their DSO by up to 30%. Its modules include: Customer Self-Service Portal.

DSO 40

DSO Credit and Collections Deductions Collector 40

Gaviti

FEBRUARY 17, 2024

This requires putting accounts receivable performance metrics in place such as DSO, actual median days delinquent (MDD), collection rate, and aging buckets to gain an understanding of the current methods for the collection process in accounts receivable is optimal, or if changes should be implemented. The ability to create and measure KPIs.

Debt Collections 52

Debt Collections Credit and Collections DSO Invoice Collections 52

Gaviti

FEBRUARY 18, 2024

In many traditional collections teams, each individual collector develops their own process for managing invoices. Track key metrics such as DSO, credit risk exposure, and credit utilization and apply them to automatically set credit limits based on creditworthiness and customer risk. These include: Lack of a unified process.

Credit and Collections 52

Credit and Collections Deductions Collector Payment Portals 52

Gaviti

FEBRUARY 18, 2024

In many traditional collections teams, each individual collector develops their own process for managing invoices. Track key metrics such as DSO, credit risk exposure, and credit utilization and apply them to automatically set credit limits based on creditworthiness and customer risk. These include: Lack of a unified process.

Credit and Collections 52

Credit and Collections Deductions Collector Payment Portals 52

Gaviti

DECEMBER 28, 2023

Inappropriate reactions on the part of the customer or collector during a collections call may make the situation worse. KPIs and metrics such as DSO, collection rate, aging buckets and collection rate trend analysis can be defined and determined beforehand to standardize the measurement of performance of your collections teams.

Credit and Collections 52

Credit and Collections Invoice to Cash Deductions Collector 52

billtrust

DECEMBER 20, 2022

If a business relies on an outdated, manual process, this can be time-consuming, ultimately extending DSO. Credit remains tied up, and collectors are unaware. And collectors, unaware of customers who have already paid, might send out unnecessary reminders and attempt to collect on paid invoices. This can slow down business.

AR Automation 52

AR Automation Digital Lockbox Cash Applicator Collector 52

Gaviti

FEBRUARY 18, 2024

Its experienced PCS debt collectors are knowledgeable of relevant regulations such as HIPAA and legal processes necessary to recover debt. Gain greater visibility into A/R performance on both an individual and team level that includes not only Day Sales Outstanding (DSO) and collection rate but also customized KPIs.

Debt Collections 52

Debt Collections Credit and Collections Days Sales Outstanding Invoice to Cash 52

Your Virtual Credit Manager

MARCH 18, 2025

As companies strive to maintain healthy cash flows and strong customer relationships, the approach taken to collect outstanding debts and the skills employed can make or break your firm’s financial stability and the collector’s professional reputation. Other times, the problems were directly related to collection practices.

Collector 130

Collector Credit and Collections DSO Debt Collections 130