Description
Businesses extend trade credit to customers to boost sales and build loyalty, but at a significant cost and risk. Accountants and financial managers can provide executives, collections, and sales teams KPIs to improve and to anticipate problems before they happen. Newer and more refined collections KPIs are now available via modern accounting systems and smarter analytics tools.
Learning Objectives
- Recognize and identify collections KPIs trends and issues
- Define and understand several collections measurements
- Discover tools and methods to apply to your business clients
Major Topics
- Understanding the importance and impacts of managing collections
- Calculating and understanding the “Big Three” collections KPIs:
- Days Outstanding (DSO), Average Days Delinquent (ADD), and Days Beyond Term (DBT)
- Newer Collections Effectiveness Index (CEI) for benchmarking & executive summaries
- Using collections KPIs to identify trends, opportunities and risks
Provider
Business Learning Institute
Professional Area of Focus
Instructor(s)
Brian Suthoff
