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Who Measures Collections Effectiveness And How?


"Who is an example vendor that will perform the measurement of effectiveness of collections and how does that process work? "

This question was asked at a recent webinar, now available on-demand:

"Essentials of Working Capital Management: Trade Credit & Collections"

Please add your thoughts about it below. Thanks!


Ken Parkinson
Title: Managing Director
Company: Treasury Information Services, LLC
(Managing Director, Treasury Information Services, LLC) |

I believe that there are credit management consultants who can do this. However, I have to admit that I haven't been actively involved with credit management for some time. I'd take a look at the NACM (credit managers) web site. I believe that the process would work by tracking DSOs, plus several varieties of DSO-related ratios. It would also include a detailed computation of the average collection periods. This, of course, can be done in-house, but you might wish to engaged an outside expert. Again, the NACM site might be helpful.


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