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Gleaning Actionable Insights from Credit Scores

Your Virtual Credit Manager

You should also segment your AR portfolio to see how risk is distributed by things like customer purchasing volume, distribution channel, industry type, geographic region, AR aging bucket, and so forth. This ensures that cash is available for ongoing operations and investments, reducing reliance on external financing.

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Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order. Without effective AR management, your cash flow is subject to entropy as the AR ages, as well as to the shocks caused by customer defaults.

DSO 130
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Why email makes accountants’ lives difficult: Data, Reporting and Analytics

Lockstep

Marrying this data is important, but you are left checking platforms, ERP, and spreadsheets to accurately connect with customers and vendors. And knowing where you stack up regarding days sales outstanding (DSO) or AR Aging? Talk about a time suck! Email isn’t designed for that.

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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

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. Collections is always playing a bit of catch up to sales.

DSO 130