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11 Signs Your AR Portfolio May Be at Risk

Your Virtual Credit Manager

A rising DSO indicates that your collections are not matching the rate of new sales, and if that goes on for any length of time, your cash flow will not be able to support the volume of your current business operations.

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Develop a data-rich dashboard: Which medical billing metrics matter?

Waystar

Days in receivables outstanding (DRO) DRO is arguably the best overall indicator for how quickly your organization turns receivables into cash. 90 days’ worth of gross charges divided by 90) or another period.

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Position Your AR to Enhance Working Capital

Your Virtual Credit Manager

The objecctive is to put credit and collection policies in place that will ensure the highest percent possible of current receivables (those not yet due) and forcefully limit the amount of AR that goes beyond 60 days past due. If your collection efforts have been a bit haphazard, you will want to tighten them up. Parting Thoughts.

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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

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Can I File for Unemployment as a Business Owner?

Fundera

If you are a small business that has closed for reasons unrelated to coronavirus, or you’re currently receiving sick leave or family leave, you won’t be able to receive unemployment benefits as well. Not everyone is universally eligible for unemployment benefits under the CARES Act, however.

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Difference Between Standard DSO vs Best Possible DSO

Gaviti

It includes both the current receivables and overdue invoices. Best Possible DSO Formula (Current Receivables x Number of Days in Period) ÷ Credit Sales for Period What Is a Good DSO Ratio? So, what is the difference and why does it matter? What Is ‘Standard’ DSO? Most often, managers use a timed cycle to calculate DSO.

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What are opportunities for accountants to provide advisory services?

Abrigo

One simple exercise for exploring this is to pick any client who is currently receiving only one service from the firm but with whom staff typically enjoy working.