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Eventually, the amount of AR over 60 days past due increased to over 50 percent of totalreceivables. The volume of collection contact was inadequate, and individual collector performance was highly variable since it was not tracked. Collection training was conducted to ensure every Collector used Best Practice techniques.
(DSO alone may account for receivables that don’t directly correlate with credit sales figures in the measured time period, reducing its accuracy when compared with shorter-term CEI calculations.) For CFOs, it’s also an important way to show how your department plays an essential role in revenue generation for your entire organization.
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