WELCOME TO ISSUE NO #026

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📆 Today’s Rundown

Hey 👋, in the last issue, we discussed why tracking Collections Effectiveness Index matter, but now, we are proceeding with Billings & Collections and today’s topic is:

Collections

Are Your Collections Metrics on Track? Optimize Your Cash Flow Now.

Newsletter highlights

1. 3 reasons why tracking collections performance metrics matters🤟

2. Collections Performance Stat of the Week 🔢

3. My Tool of the Week 📊

4. Latest Week Content Update 🆓

3 Reasons Why Tracking Collections Performance Metrics Matters

1. They give you a clear view of cash inflow efficiency

   Collections metrics provide insights into your company's cash flow health by showing how well you’re collecting payments.

   Tracking these KPIs enables you to identify potential issues early, ensuring smooth operations and a steady cash runway.

2. They uncover customer payment behaviors

   Metrics like AR aging and days sales outstanding (DSO) reveal customer payment patterns.

   By tracking these metrics, you can identify which customers may need closer follow-up and take steps to mitigate any delays in payment.

3. They drive better financial strategy and growth

   Analyzing metrics such as collections effectiveness index (CEI) or total collections helps fine-tune your collections strategy, enhancing your team's efficiency and ensuring you collect payments faster, which directly improves your company's bottom line.

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Collections Performance Stat of the Week

15%

The industry standard is to keep bad debts to sales below 15%. Exceeding this percentage indicates potential cash flow issues and inefficiencies in the collections process.

My Tool of the Week

Tesorio

Tesorio is a comprehensive collections management platform that focuses on automating accounts receivable and enhancing cash flow.

It offers:

• AI-Driven Collections Automation: Automate follow-ups, prioritize collections, and send reminders to customers based on their payment behavior to speed up cash recovery.

• Cash Flow Forecasting: Use real-time analytics and predictive insights to understand and forecast cash flow, helping you make informed financial decisions.

• Detailed AR Metrics & Dashboards: Access easy-to-understand dashboards that track key metrics like DSO, collections effectiveness, and cash conversion cycles, giving you better visibility into your collections process.

What makes Tesorio a great tool is its ability to provide actionable insights, automate the collections process, and improve cash flow predictability, allowing finance teams to focus on strategic tasks.

Latest week content update

Here is the latest week content which

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