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Increase the Liquidity of Your Receivables Portfolio

Your Virtual Credit Manager

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.

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Is Your AR Performance Measuring Up?

Your Virtual Credit Manager

Also, when sales decrease month over month, DSO tends to decrease as you collect the previous month’s higher volume of sales. Nevertheless, DSO remains a popular and widely used metric by analysts. That sum is your BPDSO. Please feel free to share this newsletter with your small business customers.