Days Credits Outstanding – a new metric for managing cash flow

Days Sales Outstanding (DSO) and Days Payables Outstanding (DPO) are important, widely used metrics to manage working capital.  Financial managers monitor these statistics very closely and regard them as key performance indicators as they work to maximize overall cash flow as well as transactional efficiency.   Through our audit work communicating with extremely large numbers of [...]

“Days Credits Outstanding,” the New Killer Metric

DSO and DPO are common, yet important concepts in  accounting. Most companies know to measure these stats and regard them as key performance indicators. Through our work with our clients' vendors we are beginning to understand the importance of another key metric, DCO. "Days Credits Outstanding" measures the amount of time that credits are open [...]

By | February 17th, 2010|Categories: AP Industry, Recovery Audit|Tags: , , , , |0 Comments