AI-Powered Collections: Introducing Agentic Procedures
The accounts receivable days formula calculates how long it takes the finance organization to collect a payment after a sale. It’s also known as the Days Sales Outstanding (DSO) metric. A lower number of days means the company is converting sales to cash faster, which improves working capital and cash flow. While DSO is a popular accounts receivable measurement of success, it should also be paired with CEI (Collections Effectiveness Index) for a truer measure of AR efficiency.
Interested in more performance metrics for accounts receivable? Check this out!
The 20 Best KPIs for Accounts Receivable: A Strategic Guide by Functional Area
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