EPISODE 139: AR - What Should You Measure? Waiting until you have collected payment or when its is late - is too long. You need a set of interim measures to ensure that nothing gets to the 30 day deadline without receiving proactive treatment. The only way to keep your AR under 30 days is to act before there is a problem.

The following represents a solid list of early warning signs on where to put your attention.

Topics: Days Sales Outstanding (DSO) - aging reports Average Days Delinquent (ADD) - your loan portfolio Turnover ratio - paid vs open Collections Effectiveness Index (CEI) - % you are able to collect Revised Invoices - inaccurate invoices that delay payment Offer multiple payment methods