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Moving Beyond DSO

Your Virtual Credit Manager

(Photo by Carlos Muza on Unsplash ) A Framework for Choosing Suitable AR Metrics Businesses should carefully assess their specific needs, objectives, and operating context when selecting metrics for accounts receivable (AR) performance measurement. Like any metric, DSO has limitations.

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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

Unfortunately, this is seldom the case, and by itself the AR Ledger provides very little in context for determining how your receivables are trending. As such, the AR metrics you track should be arrayed in a brief, easy to review reporting format. It is a measure of AR turnover.

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Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

Photo by Isaac Smith on Unsplash There are numerous metrics used to monitor the health, magnitude and risk profile of the AR asset. This article focuses on one widely used metric, Days Sales Outstanding (DSO) and the best ways to understand it. quarter, year-to-date, 12 months, etc.)

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Improving Your Dunning Strategy and Recovery Rate

Gaviti

Monitoring AR metrics like days sales outstanding ( DSO ) is one of the best places to start. Without the right data at hand, CFOs and finance leaders are missing out on a gold mine of opportunity. In fact, 64% of firms report an improvement in their DSO following automation.