Category: Collections
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What is the Best Possible DSO (BPDSO)?
Definition Best Possible DSO (Days Sales Outstanding) represents the shortest time frame in which a company could collect its receivables if every customer settled invoices strictly within the agreed payment terms. Unlike actual DSO, which captures the effects of late payments, disputes, and collection bottlenecks, this measure serves as a…
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Streamlining A/R management in the face of billing complexities
In the dynamic landscape of Communication Platform as a Service (CPaaS), efficient accounts receivable (AR) management is paramount. CPaaS providers offer diverse services, ranging from SMS and voice communication APIs to video conferencing solutions, often resulting in complex billing structures. According to an Aberdeen Group study, companies with complex billing…
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Top Strategies for Dealing with Non-paying Customers
In the world of subscription services, freemium models, and digital goods, dealing with delinquent customers are an unfortunate reality. While some may be accidental freeloaders, others might exploit loopholes or simply neglect their payments. Regardless of the reason, managing non-paying B2B customers can be a time-consuming and frustrating experience. However,…
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7 Effective Collection Strategies
In the fast-paced world of business, maintaining a healthy cash flow is paramount. Uncollected debts can significantly disrupt your financial stability and hinder growth. Implementing a robust debt collection strategy is crucial to ensure timely payments and minimize bad debt. Here, we delve into seven effective strategies that can streamline…
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Master AR Collections: The Ultimate Playbook
In today’s dynamic business landscape, a healthy cash flow is the lifeblood of any organization. Yet, managing accounts receivable (AR) and ensuring timely payments can be a constant challenge. This is where a well-defined AR collections playbook comes into play. It serves as a strategic roadmap for streamlining the collection…
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Promise-to-Pay: A Lifeline in Accounts Receivable Management
In the world of business, a smooth flow of cash is essential for survival. Yet, late payments and outstanding invoices can disrupt this flow, creating a strain on resources and hindering growth. This is where the concept of a “promise-to-pay” comes in, acting as a vital tool in accounts receivable…
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Receivables Balance Management: A Key Component of Financial Health
In the realm of accounting and finance, the receivables balance plays a pivotal role in understanding a company’s financial health and liquidity. This blog delves into the technical aspects of receivables balance, covering its definition, calculation, impact on cash flow, and strategies for effective management. Table of Contents What is…
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Understanding Past Due Accounts Receivable: A Technical Guide
Accounts receivable (AR) is one of the most important line items on a company’s balance sheet. It represents the money owed to the company by its customers for goods or services that have been delivered but not yet paid for. Efficient management of AR is crucial for maintaining healthy cash…
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Past Due Invoice Emails: Strategies, Best Practices, and Templates
Promptly receiving payment is crucial for any business, but it’s not always smooth sailing. Late payments can disrupt your cash flow, hindering your ability to meet your own financial obligations. While directly chasing after overdue invoices can be tempting, a professional and courteous approach is often more effective. Mastering the…
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Master Delinquent Accounts & Maximize Cash Flow
For any business, a steady flow of incoming payments is vital for healthy survival and growth. However, the reality is that some customers will inevitably fall behind on their payments, leading to the creation of delinquent accounts. These accounts pose a significant challenge, impacting cash flow, straining resources, and potentially…