Collections Effectiveness Index Calculation Template
Use our Spreadsheet template to assess your cash collection efficiency.
Start improving your cash collection now.
Calculate, Interpret and Improve Your DSO
DSO - for Days Sales Outstanding - is an important KPI to keep an eye on especially in fast-growing SaaS companies. It represents the number of days it takes your invoices to be paid by your clients. It, therefore, has an influence on your company’s cash flow. It also signals the efficiency of your cash management process.
There are 2 ways to calculate Days Sales Outstanding:
- The simple method: a simple formula that calculates the average number of days it takes for your customers to pay your company.
- The countback method: a more complicated and accurate way to find your DSO, where you go back month-by-month over a period of time.
Need help calculating your DSO? Check out our free spreadsheet that helps you calculate, interpret and reduce it!
Collection Email Templates to Get Paid
All B2B businesses have one common challenge: getting paid. Even with the best clients, there can be times when invoices are paid late or ignored.
The right Collection emails is the first step towards tackling this challenge and improving your A/R health. Good payment reminders also help you maintain a positive customer relationship in awkward (but necessary) situations.
Keep reading to find out what makes a collection email efficient. You’ll also discover ready-to-use collection templates and tips on how to make payment reminders more efficient for your B2B business.
8 Tips to Get Paid on Time
Not getting paid means you’re not receiving cash. Cash you need to invest, produce more, hire, and overall just grow. Cash flow issues are serious and can mean big trouble for your business.
Fortunately, we’re here to help! In this guide, you’ll learn about:
- Best practices for cash collection deployed by industry leaders.
- Tips to send the best payment reminders emails and letters.
- Our experts’ advice about how to interpret your A/R metrics.
And much more!
5 Top AR Metrics
On this spreadsheet, you'll find pre-filled formulas as well as explanations and examples to calculate the top 5 A/R metrics.
- DSO or Days Sales Outstanding.
- Accounts Receivable Aging.
- Accounts Receivables Turnover Ratio.
- ADD or Average Day Delinquent.
- CEI or Collection Effectiveness Index.
The 5 Maturity Stages of Cash Collection
B2B payments are currently undergoing a revolution. Finance leaders should pay close attention to this shift and take an early adopter approach to stay ahead of the curve.
In Upflow's latest piece, Alex Louisy, the CEO and co-founder, presents “The 5 Maturity Stages of Cash Collection”. Use this framework to identify which stage you are at, and learn how to take your accounts receivable strategy to the next level.
