Your Collections Effectiveness Index

In this video on the Key AR metrics, we discuss The Collections Effectiveness Index (CEI).

The CEI is a key metric when managing receivables because it shows you how effective your collections process is. While your Days Sales Outstanding (DSO) metric may fluctuate if your sales are cyclical, the CEI is adjusted for any cyclicality and tracks how much you collected over a period of time based on the amount that was outstanding.

The CEI ranges from 0 to 100%, and the closer you are to 100%, the better your credit & collections process. Watch this video to find out where you stand!