AR & Invoicing Performance Summary
Days Sales Outstanding
38.2 -1.8
Target: 40 days
Overdue Invoices
12.4% -0.6%
Target: ≤ 10%
Invoice Accuracy
98.7% +0.7%
Target: 98%
Cash Collected
$1.85M +$0.15M
Target: $1.7M
AR & Invoicing Core Metrics
| Metric | Measurement | Target | Actual | Owner | Status |
|---|---|---|---|---|---|
|
Days Sales Outstanding (DSO)
Average days to collect payment
|
Days | ≤ 40 | 38.2 | AR Manager | Green |
|
Overdue Invoices (%)
% of invoices past due date
|
Percentage | ≤ 10% | 12.4% | Collections Lead | Yellow |
|
Invoice Accuracy
% of invoices without errors
|
Percentage | ≥ 98% | 98.7% | Billing Supervisor | Green |
|
Cash Collected
Total cash collected this period
|
USD | $1.7M | $1.85M | AR Manager | Green |
|
Avg. Invoice Processing Time
Days from delivery to invoice
|
Days | ≤ 2 | 1.8 | Billing Team | Green |
|
Collection Effectiveness Index
Effectiveness of collection efforts
|
Index (0-100) | ≥ 80 | 78.5 | Collections Lead | Yellow |
|
Bad Debt Percentage
% of AR written off as uncollectible
|
Percentage | ≤ 1.5% | 1.2% | Credit Manager | Green |
|
E-Invoice Adoption
% of invoices sent electronically
|
Percentage | ≥ 85% | 82% | Billing Supervisor | Yellow |
AR & Invoicing Action Plan
! Reduce Overdue Invoices (Current: 12.4% | Target: 10%)
- Implement automated payment reminders for 30/60/90 day intervals
- Assign dedicated collector for top 20 overdue accounts
- Offer early payment discounts for critical accounts
- Review credit terms for consistently late payers
! Improve Collection Effectiveness (Current: 78.5 | Target: 80)
- Train collection team on new negotiation techniques
- Implement customer payment portal with autopay options
- Develop customer segmentation for tailored collection approaches
→ Increase E-Invoice Adoption (Current: 82% | Target: 85%)
- Implement incentive program for customers switching to e-invoices
- Create simplified onboarding process for e-invoicing
- Assign account managers to assist top clients with transition
EOS Implementation Guidelines
Weekly Cadence
Update every Monday at 10 AM. Review in AR Team Meeting.
Accountability
Each metric has a clear owner responsible for reporting and improvement.
Targets
Set quarterly targets aligned with company Rocks (e.g., "Reduce DSO to 35 days").
Visual Management
Display AR metrics on team dashboard visible to all members.
AR Focus Areas
Cash Flow Optimization
Improving DSO and collection rates
Process Efficiency
Streamlining invoicing and collection
Customer Experience
Improving payment experience
Risk Management
Reducing bad debt exposure
AR & Invoicing Highlights
DSO Improvement
DSO reduced to 38.2 days, the lowest in 12 months, through improved collection processes.
Overdue Accounts
Overdue invoices at 12.4%, above target. Focus needed on top 5 overdue accounts representing 60% of overdue value.
E-Invoicing Progress
E-invoice adoption at 82%, with new customers adopting at 95% rate. Legacy customers need focused migration.
AR & Invoicing Priorities
Reduce Overdues
Implement targeted collection strategy for top overdue accounts
E-Invoice Adoption
Reach 85% e-invoice adoption by Q3 through customer incentives
Process Automation
Implement AI-powered payment prediction and collection system