Remove Deductions Remove DSO Remove Online Credit Application
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AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

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. This includes both current, past and overdue invoices. monthly, quarterly or annually).

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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

The most common is DSO. For example, some might prefer to pay in person via credit or debit card. Automate collections actions with reminders, internal or external escalations based on predefined criteria such as payment due date or history, credit terms or aging of the invoice. Cash application. Disputes and deductions.

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The Best Accounts Receivable Reporting Software Solutions of 2025

Gaviti

These types of reports include cash flow forecasting, aging reports, DSO calculations, and A/R performance. Track A/R performance metrics and KPIs such as collection rates, total A/R, DSO, customer risk, collective effectiveness index (CEI) and accounts receivable turnover ratio (ART). A/R performance.

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The Importance of the Accounts Receivable Aging Report

Gaviti

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Track a range of traditional KPIs such as Total A/R, DSO, collections rate, and customer risk in addition to unique smart KPIs. Disputes and deductions. Credit management and monitoring.