Does this process sound familiar? Collect data we have easy access to. Crunch metrics based on that. Use that to update last year’s report. But wait! That’s not only... Read more
Jess Scheer Continuing Education Manager, IOFM It’s hard to turn performance goals into action plans without knowing how much improvement is realistic? If you’re already world class, how... Read more
Guessing at performance levels in Accounts Receivable is a dangerous prospect. If you have only a general idea of how the team is doing, you will not be able... Read more
Weighted Average Terms versus Weighted Average Days to Pay is a metric that is used to measure a collections department’s effectiveness. Many analysts prefer it because it is not... Read more
Days Sales Outstanding (DSO) is one of the most popular and most controversial metrics used to evaluate an AR department's effectiveness. Many credit managers are judged on DSO during... Read more
Before you venture outside your organization to search for best practices, look in your own backyard. You may find that one of your departments is saving 50% on a... Read more
The speed with which you get cash from sales into your coffers can have a tremendous impact on your company, affecting how you do business both long-term and short-term.... Read more
AR and credit departments should be providing much more information than just routine DSO figures and high balance reports to their controllers, CFOs and C-suites. Proactive AR and credit... Read more
Well-conceived programs and careful oversight of the AR function can offer credit and AR management a prime opportunity to reduce working capital and minimize investment in accounts receivable.
Benchmarking is the most credible of all justifications for your AR department operations. In benchmarking, continuous process improvement is emphasized and benchmarking should not be a onetime event.