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. If DSO is rising, you are falling behind.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Emagia

MARCH 3, 2025

Dispute and Deduction Management Disputes arise due to billing errors, quality issues, or service discrepancies. Step 7: Managing Disputes and Deductions Have a dedicated team to handle disputes and resolve them efficiently to prevent delayed payments. What is Days Sales Outstanding (DSO) and why is it important?

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Your Virtual Credit Manager

JULY 25, 2023

Here are the KPIs you will need at a minimum: Days Sales Outstanding (DSO) - This metric tells you how fast you are converting your sales into cash. It is best understood in relation to Best Possible DSO (BPDSO) which is essentially what your DSO would be if every customer paid on time.

Best Possible DSO (BPDSO) 130

Best Possible DSO (BPDSO) DSO Cash Forecasting Credit and Collections 130

Emagia

MARCH 10, 2025

In the FMCG sector, where transaction volumes are high, efficient cash application ensures that accounts receivable are updated promptly, reducing days sales outstanding (DSO) and improving working capital. Can automation reduce DSO (Days Sales Outstanding) in FMCG?

Cash Applicator 40

Cash Applicator Days Sales Outstanding DSO Automated Cash Application 40

Gaviti

APRIL 3, 2024

When accounting departments want a quick evaluation of the health of a business, they often look at their DSO, or days sales outstanding. Traditionally, a low DSO indicates that your company has capital available and is in good financial standing. It has $1 million in outstanding receivables but total sales of $1.5

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Gaviti

APRIL 11, 2024

What are the average days sales outstanding? The most common is DSO. Get a holistic view of your A/R data that includes a combination of traditional metrics such as DSO, collections, customer risk, etc., Disputes and deductions. Consider the following examples: How much revenue does your business generate?

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

APRIL 11, 2023

Invoice Inaccuracies : When there are errors on your invoice, or discrepancies between your invoice and the customer’s purchase order (PO), your customer is likely to only make a partial payment (also known as a payment deduction) or not pay until the discrepancy is resolved. There are multiple costs and vulnerabilities that emerge.

Bad Debt 130

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

Gaviti

JUNE 25, 2024

Forecasting Accounts Receivable Collections Using DSO The easiest and most accurate way to forecast your accounts receivable is using days sales outstanding (DSO). Here are the steps to calculate an accounts payable projection using DSO. Disputes and Deductions.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Deductions 52

Emagia

FEBRUARY 20, 2025

Automating these processes not only enhances accuracy but also ensures timely collections, thereby improving cash flow and reducing the days sales outstanding (DSO). Deductions Management : Simplify the process of handling customer deductions and disputes.

AR Automation 40

AR Automation Credit and Collections Cash Applicator DSO 40

Emagia

DECEMBER 3, 2024

Managing credit approvals, invoicing, collections, and deductions manually can be overwhelming, error-prone, and inefficient. Retail and Consumer Goods: In industries with thin margins and high transaction volumes, every day of delay impacts cash flow. Emagia steps in to automate these processes and provide real-time insights.

Days Sales Outstanding 52

Days Sales Outstanding DSO Revenue Recognition 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. If you need help with this, check out how to calculate DSO.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent Days Sales Outstanding DSO 52

Emagia

FEBRUARY 5, 2023

These days, there exists a lot of payment methods – technology-driven payment methods and traditional methods – that allow businesses to choose from depending on the business model. The process can get more cumbersome if deductions are involved.

AR Automation 52

AR Automation Days Sales Outstanding DSO Credit and Collections 52

Gaviti

AUGUST 29, 2024

However, the simplest option for forecasting account receivable is by using DSO (days sales outstanding): Accounts Receivable Forecast = DSO x (Sales Forecast ÷ Days in Forecast) Where DSO = average accounts receivable ÷ (annual revenue ÷ 365) You should also note the days in the forecast refers to the time period used for the projection.

DSO 52

DSO Days Sales Outstanding Credit and Collections Deductions 52

Gaviti

JULY 11, 2024

By centralizing data in one place, you’ll allow for A/R and finance teams as well as marketing, sales and procurement to see metrics such as days sales outstanding (DSO), unique KPIs and customer risk assessments. Disputes and deductions. Gaining better visibility into the A/R process. Reports and analytics.

DSO 52

DSO AR Automation Credit and Collections Bad Debt 52

apruve

JULY 25, 2022

These platforms digitalize workflows and automate repetitive and time-consuming tasks, allowing A/R teams to manage a growing customer base more efficiently while reducing Days Sales Outstanding (DSO). What Sets HighRadius Apart. What Sets Esker Apart. Integrates and automates procure-to-pay and order-to-cash processes.

DSO 52

DSO Credit and Collections Order to Cash Days Sales Outstanding 52

Gaviti

MARCH 3, 2024

This helps to speed up the entire invoice-to-cash cycle, reducing Days Sales Outstanding (DSO) and improving cash flow. Download the Ebook How Gaviti Automates the Account Receivables Process By automating the A/R process with Gaviti, businesses have been able to reduce their DSO by 30% – 50% in less than 6 months.

DSO 52

DSO Credit and Collections Days Sales Outstanding Cash Applicator 52

Emagia

JULY 3, 2023

Reason codes should be recorded and mapped to relevant ERP deduction codes for smooth processing. Download Case Study Utilize the system’s predictive capabilities to expedite the settlement of deductions in situations where remittance information is absent or unavailable, minimizing the need for manual involvement.

Automated Cash Application 52

Automated Cash Application Cash Applicator Days Sales Outstanding AR Automation 52

Emagia

JANUARY 22, 2023

CFOs and finance leads must review the day-to-day activities throughout the finance and accounting to understand what can, or should, be automated so that the appropriate tools can be implemented. By adopting emerging technologies like AI, ML, and Automation, such time-consuming and mundane tasks can be automated.

Days Sales Outstanding 52

Days Sales Outstanding AR Automation Order to Cash DSO 52

Gaviti

FEBRUARY 18, 2024

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. Accurate accounts free up your A/R resources from having to resolve disputes or verify deductions. Dispute Management and Deductions.

Debt Collections 52

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

Gaviti

DECEMBER 5, 2023

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. It can also advise you of at which point in the customer lifecycle you should put these credit limits in place.

Average Days Delinquent 52

Average Days Delinquent Collection Effectiveness Index Credit and Collections Days Sales Outstanding 52

Gaviti

DECEMBER 5, 2023

Streamline disputes and deductions Disputes can cause a hit to your cash flow while they wait to be resolved, a process usually managed by human A/R teams with many steps along the way that are all prone to human error. It can also advise you of at which point in the customer lifecycle you should put these credit limits in place.

Average Days Delinquent 52

Average Days Delinquent Collection Effectiveness Index Credit and Collections Days Sales Outstanding 52

Your Virtual Credit Manager

MARCH 11, 2025

From an accounts receivable (AR) perspective, digitization began accelerating in the late eighties with the introduction of tools that could help with financial analysis followed by collection, deduction management, and remittance processing software in the nineties. Below are the key advantages: 1.

Days Sales Outstanding 130

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

Emagia

FEBRUARY 5, 2025

In the realm of accounts receivable (AR), deductions are one of the most common yet challenging issues that businesses face. A deduction occurs when a customer reduces the amount they owe on an invoice, typically due to reasons such as billing errors, pricing discrepancies, or discounts taken without authorization. What are Deductions?

Deductions 40

Deductions Revenue Recognition Accounts Receivable (AR) Days Sales Outstanding 40

Emagia

FEBRUARY 14, 2025

This integration encompasses functions such as credit management, invoicing, collections, deductions, and cash application. Deductions and Dispute Management Automated Deduction Coding: Classifying and resolving deductions efficiently to minimize revenue leakage. Why is Receivables Automation Important?

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Cash Applicator 40

Emagia

DECEMBER 30, 2024

Set Clear Objectives : Define specific goals for automation, such as reducing Days Sales Outstanding (DSO) or improving cash application rates. The platform encompasses various modules such as Credit, Receivables, Collections, Deductions, Cash Application, and a Customer EIPP portal, all aimed at enhancing AR processes.

AR Automation 40

AR Automation Accounts Receivable (AR) Days Sales Outstanding Credit and Collections 40

Emagia

DECEMBER 30, 2024

Automated Collections : Streamlines the collections process, reducing days sales outstanding (DSO). The factor then collects the payment from customers, deducts its fee, and remits the remaining balance to the business. Is accounts receivable factoring tax-deductible? Improved cash flow.

Credit and Collections 40

Credit and Collections Days Sales Outstanding Deductions Credit Risk 40