Benchmarking

Q. Which AR metrics do your leaders find most valuable? Examples include:  Days Sales Outstanding (DSO): Measures the average number of days it takes to collect payment after a sale. Cash… Read More

Q. I have some questions for the AR/O2C/C&C Advisory Panel: METRICS: We have a small team of two doing the AR work for our life insurance company. Do you look at daily volume of different… Read More

A recap of the IOFM AR | O2C | C&C Advisory Panel meeting of March 22, 2022  - Topics of discussion: Complexity of invoices. Vendors require invoice customization, which can become cumbersome for… Read More

Q. Which are the sources of information you might use to benchmark your DSO (days sales out) and DPO (days payable out) in your industry? A. (Answered by the IOFM Advisory Panel) ----- We have… Read More

REL Consulting, a division of The Hackett Group, recommends many metrics when working with clients. One metric uses weighted average terms (WAT) versus weighted average days to pay (WADTP) to gauge… Read More

Beloved by upper management and Wall Street analysts, Days Sales Outstanding (DSO) is one of the most widely used metrics. However, DSO is the bane of many credit professionals. Their lament is that… Read More

Q. Which are the sources of information you might use to benchmark your DSO (days sales outstanding) and DPO (days payable outstanding) in your industry? A. (Answered by the IOFM Ask the Expert… Read More

Days Sales Outstanding (DSO) is one of the most widely-used metrics. Accounts receivable professionals, financial analysts and investors employ the ratio to calculate the average number of days it… Read More

By Wayne Smith - Well-conceived programs and careful oversight of the AR function can offer credit and AR managers a prime opportunity to reduce working capital and minimize investment in accounts… Read More

Job one for many AR departments is getting the cash in; applying the cash and clearing paid invoices from the system is an “after step” to receiving and collecting, but it is a critical step.… Read More