Your Virtual Credit Manager

JANUARY 3, 2023

The client had been forced to layoff seven of their 16 credit department employees and were desperate to find a way to keep up with collections during their peak season and meet the aggressive DSO goals upper management had set. During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

MARCH 14, 2023

Focus on the over 60 day past due AR balances to get the most bang for your collection buck This approach foregoes a huge cash flow opportunity (collecting AR that is under 60 days past due), and is not very effective at preventing bad debt (too little, too late). For more on collection efficiency, check out this article.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

Your Virtual Credit Manager

APRIL 11, 2023

Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. Failure to monitor your receivables, and identify the emerging risks in your AR portfolio, leads to missed payments, increased bad debt write-offs, and reduced cash flow. An under performing AR.

Bad Debt 130

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

Your Virtual Credit Manager

JANUARY 17, 2023

The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent. it just might help them pay you sooner! Revenue or Profits?

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

The Esker Blog

DECEMBER 13, 2022

Talent attraction & retention Pace of digitalization & innovation Security risks & data breaches Increasing bad debt. Is your DSO longer than the industry average? Where should AR leaders focus their attention? Within the invoice-to-cash (I2C) process, there are many areas that AR leaders could focus on.

Accounts Receivable (AR) 97

Accounts Receivable (AR) DSO Bad Debt Invoice to Cash 97

Gaviti

MARCH 4, 2024

Other common names include “days sales in accounts receivable,” “average receivables collection period,” or “ days sales outstanding (DSO).” Typically, the shorter your collection period, or the lower your DSO/higher your accounts receivable turnover , the better. What is an Optimal Average Collection Period? It raises profitability.

DSO 52

DSO Credit and Collections Days Sales Outstanding Credit Sales 52

TreviPay

JULY 20, 2023

This is important for businesses of all sizes, as it allows them to reduce DSO , eliminate bad debt and enable real-time buyer onboarding within weeks while their development team completes the full integration.

Bad Debt 52

Bad Debt DSO Transactions 52

Your Virtual Credit Manager

SEPTEMBER 13, 2022

If not approved, there should be an attempt to collect the disputed amount to avoid diluting profits, and if not collected, the deduction should be cleared by a bad debt write-off. One company that took a Six Sigma approach to eliminating deductions realized a 15 percent improvement to DSO. Well, it’s not.

Deductions 130

Deductions Credit and Collections DSO Accounts Receivable (AR) 130

billtrust

NOVEMBER 1, 2022

In short, they include three key objectives: maximizing cash flow , minimizing bad debt, and maintaining customer satisfaction. Minimizing bad debt , on the other hand, helps businesses to avoid write-offs and keep their bottom line healthy. Bad debt expense.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

TreviPay

APRIL 11, 2023

Outsource risk, and in doing so remove receivables from their balance sheet to improve/eradicate late payments and DSO. Financing With their global scale, and significant readily scalable banking facility, TreviPay irradicated the retailer’s DSO, ensuring payment within 2 days from the date of each transaction, on time, every time.

DSO 52

DSO Bad Debt Credit and Collections Order to Cash 52

Emagia

FEBRUARY 5, 2023

Cash flow and working capital benefit substantially from a reduced days sales outstanding (DSO) achieved with the help of AR automation tool. There are case studies that have founds that AI-powered AR automation software helps shorten your DSO up to 25 percent.

AR Automation 52

AR Automation Days Sales Outstanding DSO Credit and Collections 52

Emagia

OCTOBER 31, 2022

Automation of the credit management process delivers benefits, ranging from faster customer acquisition and processing of credit approvals to avoid bad debts. Why Should You Automate Credit Management Processes? of the slow pace of the process Boosting credit operations can directly improve sales growth.

Credit and Collections 59

Credit and Collections Bad Debt Credit Management DSO 59

Emagia

AUGUST 23, 2023

Days Sales Outstanding (DSO) , which gauges the typical time it takes for a business to collect payments from clients after completing sales, is a crucial indicator of working capital. A lower DSO is preferable since it indicates timely invoice payment, which enables the seller to get access to cash more quickly.

Credit and Collections 52

Credit and Collections DSO Days Sales Outstanding Bad Debt 52

Emagia

MAY 8, 2023

Companies can minimize bad debt, increase cash flow, and forge enduring connections with reliable partners by carefully considering trade references. For any organization looking to minimize credit risk and increase profitability, it is essential to comprehend how trade references operate and how to use them successfully.

Credit Scoring 52

Credit Scoring Bad Debt Days Sales Outstanding Credit Reporting Agencies 52

TreviPay

MARCH 20, 2023

Factors for evaluating creditworthiness Average days sales outstanding (DSO) needs to be balanced against supplier terms so that your cash flow remains steady. If bad debts are increasing, finding their source may uncover problems in your credit approval process.

B2B Credit 52

B2B Credit Credit Management Credit and Collections Days Sales Outstanding 52

Gaviti

MARCH 6, 2023

This helps keep payments up-to-date so businesses can reduce their exposure to bad debt and late payments. Businesses can reduce DSO and improve cash flow by automating workflows, providing accurate data and reports, and making it easier for customers to pay on time.

Cash Applicator 52

Cash Applicator Order to Cash Cash Forecasting Bad Debt 52

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

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? The most common is DSO. Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect. What are the average days sales outstanding? What is the company’s financial position?

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

JSP Credit Management

NOVEMBER 15, 2021

We realised that some companies also choose to set targets on other metrics related to accounts receivable such as amount of debt in query, or how long queries are taking to resolve or debtor days targets (otherwise known as DSO).

Collector 52

Collector Credit and Collections Bad Debt DSO 52

Your Virtual Credit Manager

FEBRUARY 21, 2023

If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses. The problem with DSO is that AR performance can be improving at the same time DSO is rising. There are several ways you can calculate DSO. The opposite is also true.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The task is twofold: Optimizing cash inflows (and avoiding bad debt) confined by the number of requests for payment that can be made within a specified time period.

Past Due Invoices 130

Past Due Invoices Credit and Collections Bad Debt Accounts Receivable (AR) 130

Gaviti

APRIL 18, 2024

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. An aging report also analyzes how your customers’ companies work.

AR Aging 52

AR Aging Credit and Collections Bad Debt Accounts Receivable (AR) 52

Gaviti

OCTOBER 30, 2023

The ability to track and send reports related to Days Sales Outstanding (DSO), net accounts receivable, A/R turnover ratio, and other important metrics help you gain insights into the financial stability of a company.

Days Sales Outstanding 75

Days Sales Outstanding Invoice Collections Credit and Collections DSO 75

Serrala

MARCH 14, 2024

Helping you to put an end to bad debt and write-offs, eliminate errors, and provide you and your customers with the transparency and experience that helps reduce churn and improve your position. Read more Stay secure and compliant safeguard your business against legal, data, cyber, and financial risk with minimal overhead.

Credit and Collections 52

Credit and Collections Automated Cash Application Bad Debt Cash Applicator 52

Gaviti

FEBRUARY 6, 2023

As a top area of focus, consider metrics like your days sales outstanding (DSO) rates and how small changes to processes can improve the accounts receivable cycle. Offering multiple payment options: By providing customers with multiple payment options, teams can make it easier for them to pay their invoices, which can help to reduce DSO.

AR Automation 52

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

Gaviti

NOVEMBER 27, 2023

Applying both of these tactics to your dispute resolution strategy will improve your cash flow and significantly reduce bad debt. With performance metrics in real-time, it provides a proactive approach to invoice disputes resolution, improving the performance of your A/R collections team and your DSO by up to 30%.

Invoice Disputes 52

Invoice Disputes Credit and Collections Deductions Invoice to Cash 52