Your Virtual Credit Manager

NOVEMBER 14, 2023

The other policy conditions (deductibles, co-pays, etc.) On the positive side, Credit Insurance may help you get a higher credit line and a lower interest rate if you are pledging your receivables as collateral for a bank loan or line of credit. Insurers want to be paid for the risk they bear.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Fundera

OCTOBER 26, 2019

21 Small Business Tax Deductions. For small business owners, there are few sweeter phrases than “small business tax deductions.” ” After all, everyone wants to save money, and small business tax deductions allow business owners to do just that. What Is a Small Business Tax Deduction? Inventory costs.

Deductions 64

Deductions Small Businesses Bad Debt Credit Sales 64

Your Virtual Credit Manager

AUGUST 29, 2023

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). When the number drops below 80 percent, you should consider making changes to boost collections.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Emagia

MARCH 3, 2025

Introduction to Accounts Receivable Process Cycle The Accounts Receivable Process Cycle refers to the systematic approach businesses use to manage credit sales and collect payments from customers. This cycle begins with establishing credit policies and extends through invoicing, payment collection, and account reconciliation.

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Gaviti

JANUARY 2, 2024

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.) Similar to DSO, this cash application KPI offers a broad measure of how effective your collection efforts are. (DSO

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent Days Sales Outstanding DSO 52

Gaviti

APRIL 3, 2024

Best Possible DSO Formula The formula for Best Possible DSO is: (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period 7 Strategies to Reduce DSO Since DSO reduction is such an important element of your accounting operations, many companies turn to tools such as DSO reduction software to assist them.

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Emagia

JULY 10, 2023

These entries show the amount a client owes to the business for products and services provided on credit. An accounts receivable journal entry intends to ensure that financial activities related to credit sales are documented and entered into the company’s accounting records.

AR Automation 52

AR Automation Transactions Deductions Credit Sales 52