Webinar: The Periodic Table of AR Performance

Days Sales Outstanding (DSO). It’s a metric often treated as the definitive measure of accounts receivable performance. But as finance leaders discussed in a recent webinar, The Periodic Table of AR Performance: How Finance Leaders Build a Better Formula for Cash, that single metric rarely tells the whole story. In a rapidly changing environment of shifting customer behavior, economic uncertainty, and rising executive scrutiny, AR teams need a more complete formula to help them understand how AR operations are performing and how effectively the team is managing corporate cash flow.

This webinar brought together two seasoned finance leaders, Janet Elliott, Director of Financial Services at Werner, and Nikki Benedict, Billtrust’s Corporate Controller, to break down how high‑performing organizations use a connected ecosystem of key performance indicators (KPIs) rather than relying on DSO alone. The conversation addressed Billtrust’s Periodic Table of AR Performance Metrics and highlighted how KPIs can act as interdependent elements but are most helpful when paired together.

The Reality Facing AR Teams: Cash Flow Volatility

Attendees were asked which AR challenge is creating the most pressure for their teams right now. The responses revealed a striking pattern: instead of focusing on a single problem, teams are being pulled in multiple directions at once.

The top challenges identified were:

• Managing exceptions and manual work associated with cash application processes
• Turning AR data into actionable insight to improve financial performance
• Changing customer payment behavior and the impact on cash flow

A second poll exposed a clear standout when asked which part of AR feels the least stable today: Customer payment timing

These results paint a picture that has been confirmed by recent research: cash flow volatility is a concerning problem. Predictable payment cycles are eroding, exceptions are increasing, and AR teams are drowning in data without the clarity to act on it. In response to these issues, many finance executives are tightening cash management, which means taking a harder look at their AR performance metrics.

67% of finance leaders report their customers are paying slower than six months ago. One in five says it’s significantly slower. Explore the research report.

AR Performance: Why Leadership Always Starts with DSO and Why That’s a Problem

DSO remains the first point of investigation for CFOs, boards, and executive teams looking to accelerate AR processes and cash flow. Benedict explained why: “DSO is the first number that leadership will ask for, but it’s a lagging indicator. On its own, it’s not going to tell the whole story. It’s misleading on a standalone basis.”

DSO is heavily influenced by factors outside the AR team’s control, including:

• Sales volume and seasonality
• Billing cycles
• Changes in customer mix
• Large, project‑based invoices

Janet Elliott reinforced this point from her operational experience. “DSO is not always reflecting how the team is actually performing… a strong sales month or large projects can push DSO higher even when collections execution is still solid,” she explained.

The danger isn’t just misinterpretation but misalignment. When leadership relies on DSO alone, AR teams can appear to be underperforming even when they’re doing the right work.

External and Internal Conditions Shape KPIs Continuously

A recurring theme throughout the AR performance discussion was how external conditions are reshaping KPIs. Economic shifts, technology adoption, and policy changes can all move metrics regardless of well or how poorly the AR team is performing. Elliot described how rapidly changing customer behavior impacts AR metrics. “More customers moving to portals, different timing of resolutions, economic conditions—there are a lot of things hitting day‑to‑day processes that we weren’t totally prepared for,” Elliott said.

Benedict added that policy decisions themselves can be a KPI driver. “If you have a policy associated with payment terms or credit allocations, and you lighten those up, it’s going to move your KPIs,” she explained.

Moving Beyond DSO: KPIs that Complete the Big Picture

Both speakers emphasized that DSO requires broader context, and that context comes from companion metrics that explain why the number is moving.

CEI and Bad Debt add More Context to DSO

Benedict described Collections Effectiveness Index (CEI) as her next go‑to metric after DSO.

“CEI is going to be my next go to, because I need to understand how the collections team is actually performing against AR that is collectible,” she explained even as she warned that CEI alone isn’t enough. She stressed the importance of pairing it with bad debt metrics.

“Your DSO and your CEI could be performing well, but it’s because you have more bad debt. So, you want to look at all of those metrics side by side.”

Nikki Benedict, Corporate Controller, Billtrust

This pairing ensures that strong operational performance isn’t masking long‑term financial risk.

Aging Buckets: Where Problems Show Up First

When something begins to break in AR performance, Elliott knows exactly where the problems can be detected first. “Typically, it’s in those aging buckets,” she said. “That’s where I’m noticing it first.” More unpaid invoices and rising delinquencies serve as a key indicator risk, often signaling:

• Capacity or workload issues
• Cash application matching problems
• Customer payment behavior changes

By monitoring how balances roll forward month over month, AR leaders can intervene early—before KPIs like DSO become inflated or customer issues escalate into bad debt.

Housekeeping Metrics are Key to Trustworthiness

While output metrics like DSO and CEI grab executive attention, Benedict argued that foundational process metrics are what make those outputs trustworthy.

“Most of the metrics at the bottom of the periodic table are housekeeping metrics… It’s like your car telling you maintenance is required. Something’s broken somewhere, and you’ve got to go fix it,” said Benedict.

Examples of these housekeeping indicators include:

• Cash application match rates and match accuracy
• First-time invoice accuracy
• Credit application completion percentage

If these metrics degrade, downstream KPIs will inevitably follow. All too often, it can be too late to react, particularly if AR leaders aren’t keeping a finger on the pulse of the action. This explains why Benedict and Elliott agree that monitoring even housekeeping metrics on a more frequent basis is helpful.

AR Performance Dashboards: From Efficiency Tool to Strategic Enabler

Both speakers agreed that AR automation software has crossed a critical threshold. It’s no longer just about saving time. It’s about seeing what’s coming next.

“Automation isn’t just about automation anymore. It’s about enhancing insights behind the KPIs so you can drive improvements and action.”

Nikki Benedict, Corporate Controller, Billtrust

Elliott shared how analytics fundamentally changed how she communicates with executives. “Before automation, I felt like I was always defending my team,” she said. “Now I can speak to the positives because I have the data at my fingertips.” Her point comes to life when you understand the visibility her AR automation platform gives her. Her new insight transformed DSO from a being a pain point to part of a broader, more accurate narrative about AR performance.

“We learned our customers were paying 3 to 7 days earlier than our payment terms. I couldn’t tell that story before, because I only had DSO metrics.”

Janet Elliott, Director of Financial Services at Werner

Recognizing Risk While There’s Still Time to Do Something About It

Perhaps the most powerful shift described in the webinar was in‑month visibility. Historically, AR teams had to wait for month‑end close before understanding AR performance. By then, corrective action was already delayed.

Benedict explained the difference as this: “If you can provide insights in‑month, there’s time to react. Otherwise, you package it up after the month-end close, and it becomes another wave of insight with no time to act,” she explained.

For example, with Billtrust’s predictive analytics, collectors and AR managers can:

• Receive a daily cash flow forecast, projecting cash availability over the next 13 weeks
• Identify slow payers, seeing when their days‑to‑pay metrics begin to drift
• Get AI-generated recommendations to reduce credit risk proactively
• Understand root causes for disputes and delinquencies, pinpointing ways to prevent bad debt
• Improve the customer experience with techniques that encourage faster payments

People are Behind Every KPI

Despite the focus on analytics, both leaders returned repeatedly to one idea: people are the true drivers of performance.

Automation gives teams the time and clarity to do higher‑value work—having risk conversations, collaborating cross‑functionally, and focusing on the customers that matter most. Elliott noted that without these tools, teams would still be “hunting through spreadsheets” instead of solving problems.

Practical Advice for AR Leaders Struggling with KPIs

The session left AR leaders with a clear roadmap:

1. Stop relying on DSO alone: Pair it with CEI, aging trends, and risk metrics to see the bigger picture.
2. Don’t ignore housekeeping metrics: These point to regular maintenance problems that must be fixed.
3. Use automation to change the conversation: A wider variety of metrics enable celebration, not just defense.
4. Tell the story, not just one number: When leadership makes decisions based on one figure, make sure the larger context is clear.

The Final Formula for a Stronger Cash Flow

The “Periodic Table of AR Performance” isn’t about tracking more metrics for the sake of complexity. It’s about understanding how each KPI interacts with the others and how people, process, and policy shape the results.

DSO will always matter. But when AR leaders can explain why it’s moving, what’s moving with it, and how the team is responding, KPIs become something far more powerful than a report card. They become a decision‑making engine for the business.

Interested in learning more about AR performance KPIs? Check out this eBook: The 20 Best KPIs for Accounts Receivable: A Strategic Guide by Functional Area. When you need help driving measurable improvements in your performance metrics, talk to an AR expert at Billtrust and get a free consultation.