How Does Your Company Measure Receivables Performance?
The ability to convert AR to cash is the primary job of the Credit Department. The overall performance of the department should be monitored and used to help improve efficiencies of the department and for future considerations.
Most companies use Days Sales Outstanding (DSO), however, there are several other Key Performance Indicators (KPI's), that used in conjunction with one another, give a better picture of a company's receivables.
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