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Who Measures Collections Effectiveness And How?

Asked on April 7, 2015

"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!

Answers

Ken Parkinson Managing Director • April 7, 2015

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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