Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. As the saying goes, you can’t manage what you don’t measure.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Gaviti

SEPTEMBER 7, 2023

Days sale outstanding is one of the most widely used criteria for judging the effectiveness of your accounts receivable strategy. This term describes the average number of days it takes a company to turn invoices into cash. It includes both the current receivables and overdue invoices.

DSO 52

DSO Days Sales Outstanding Past Due Invoices Credit and Collections 52

Gaviti

NOVEMBER 20, 2023

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.

Collection Effectiveness Index 52

Collection Effectiveness Index Days Sales Outstanding DSO Credit and Collections 52

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. But continually high ADD scores across clients may indicate poor collection efficiency on your side.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding 52