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Collections improve fastest when teams track the right numbers.
Most businesses track total AR balance. That’s not enough. Strong AR teams track behaviors, timing, and trends.
You don’t need 20 metrics. You need a few that actually drive action and will help you focus in on what matters to your business.
Start with these core AR KPIs to get going…
Days Sales Outstanding (DSO)
Shows how long it takes to turn invoices into cash. If DSO rises, cash is slowing.
Past Due Percentage
Measures how much of AR is late. High percentages signal follow-up or credit issues.
Collections Effectiveness Index (CEI)
Shows how much collectible AR you actually collected. This is a true performance metric.
Promise-to-Pay Hit Rate
Tracks how often customers keep payment commitments. This shows relationship and follow-up strength.
Why these matter
You see problems earlier
You spot customer behavior trends
You know if collections strategy is working
You make decisions based on facts, not feelings
February is about receivables that turn into cash. KPIs turn collections from reactive work into controlled performance.
If you don’t currently track these or want help building dashboards, reply to this email, message me in the community, or email [email protected]. Visibility drives results.
Creativity + Science = Ads that perform
Join award-winning strategist Babak Behrad and Neurons CEO Thomas Z. Ramsøy for a strategic, practical webinar on what actually drives high-impact advertising today. Learn how top campaigns capture attention, build memory, and create branding moments that stick. It’s all backed by neuroscience, and built for real-world creative teams.
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