All AR departments should be using Days Sales Outstanding (DSO) to measure their performance. This key indicator is not only vital for predicting cashflow, but also provides useful information that informs your risk exposure regarding each customer, including:
- Satisfaction levels
- Payment patterns
- Creditworthiness
Yet, a recent study found 77%* of AR departments are behind schedule on collections. This has a huge knock-on effect for the health of the business.
Here is ONE strategy that shows you how to streamline your credit management procedures:
1. When onboarding new customers, be sure to thoroughly assess their creditworthiness and provide them the right terms and right a...
To read and download this content you need to be registered.
Become a member to access all content and / or download it
.png)
