It’s important to know how to use your collection KPIs once you have launched your collections policy. Review your key performance indicators (KPIs) on a regular basis. By keeping an eye on your trends, you will know if you need to adjust your policy or procedures. Here are some examples:
You discover your days sales outstanding (DSO) is more than 50 days. According to your policy, you are sending out two invoices during the first 45 days. You may want to adjust your policy by adding a reminder call between the invoices to help collect the balance sooner.
Continue reading Collection Policy, Part 5: How to Use Your Collection KPIs