Trade receivables are still all too often regarded as a mere cost center or a purely administrative task. However, in today’s demanding economic climate, where every euro of cash counts, effective management of accounts receivable can transform a constraint into a genuine strategic lever.
For growing structures, there is a suitable solution: a collection software for SMEs designed to simplify reminders and secure payments.
Executives, CFOs, Credit Managers: your ability to track the right KPIs (key performance indicators) can make the difference between a receivable under control… or out of control.
In this article, discover the 5 essential indicators for effectively managing your accounts receivable and making dunning a tool for performance, cash flow and relationship quality.
DSO: your No. 1 cash flow indicator
DSO (Days Sales Outstanding) is the main barometer of your collection performance. It measures the average number of days it takes your customers to pay you.
Why is this important?
A high DSO means that your cash flow is tied up for too long. Conversely, a low DSO reflects efficient management, relevant reminders and faster payments.
Formula :
(Accounts receivable incl. VAT / Sales incl. VAT) x Number of days
To be continued:
- Overall
- By customer
- By portfolio or entity
With Aston AI, you have a real-time view of your global and detailed DSO. You can even track it by manager or customer type.
Discover Aston Cash Collection, the automated debt collection software that
Turn your customer base into a growth driver with Aston AI.
Litigation rates: an indicator of malfunctions
The dispute rate tracks the proportion of disputed or blocked invoices, often the cause of late payment. It’s an excellent indicator of service quality and process reliability.
Calculation :
Number of invoices in dispute / Total number of invoices
What to watch for:
- By customer
- By type of dispute (delivery, amount, etc.)
- By status (in progress, resolved)
Why is it strategic?
A high rate of disputes puts a strain on your collection times and can damage customer relations. Reducing it means improving cash flow.
In Aston Cash Collection, you can filter and track disputes by cause, person responsible and customer.
Fulfillment rate: measure customer commitment
When a customer undertakes to pay by a given date, this constitutes a promise to pay. The rate of promises kept tells you how reliable these commitments are.
Calculation :
Payment promises honoured / Total number of promises
Interest :
- Adjust your customer scoring
- Adapt your relaunch scenarios
- Identify the most reliable customers
With Aston AI, every promise is dated, traced and automatically compared with the actual payment. The indicator is updated in real time, with a direct impact on your cash flow forecast.
Reminder response rate: the voice of the customer
How many of your reminders are answered? This response rate enables you to assess the relevance of your messages, as well as the quality of the channel used (email, post, SMS, call).
Calculation :
Number of responses / Number of reminders sent
Please note:
A low rate may indicate :
- Unclear or poorly targeted messages
- The wrong communication channel
- A perceived lack of legitimacy
Aston AI centralizes customer responses (email, SMS) in a single timeline, so you can adapt your reminders and detect blockages.
Collection automation rate
Is your team spending its time on the right subjects? Visit automation rate shows you how many of your dunning actions are processed without human intervention.
Calculation :
Automated follow-up actions / Total actions
Objective:
- Between 70% and 90% depending on customer type
- Free up time for complex cases
- Standardize low value-added reminders
Thanks to its customizable scenarios, Aston AI enables advanced automation: up to 80% of your reminders calls can be handled automatically.
Bonus: Weighted average delay
This KPI is often overlooked, yet crucial. Unlike the DSO, it weights the delay according to the amount of receivables.
Example:
- 20 days overdue on €1,000 ≠ 5 days overdue on €100,000
This makes it possible to prioritize really risky customers.
This indicator is available as standard on Aston AI, with a detailed view by customer.
Aston Cash Collection: more than just software
By centralizing all these indicators in a single tool, Aston AI transforms your customer workstation into a steering cockpit. Thanks to its customizable dashboards, you can monitor your KPIs in real time, by portfolio, subsidiary, currency or scoring. You no longer have to choose between management, automation and customer relations: you can have all three.
go from an underdog customer workstation to a strategic customer workstation
These 5 key indicators + 1 bonus enable you to regain control of your accounts receivable. They help you to :
- Prioritize your actions
- Make your forecasts more reliable
- Improving customer relations
- And above all: speed up your cash flow
With Aston AI, all these indicators are already available in your dashboards. You gain in responsiveness, efficiency and peace of mind.
Contact us today for a personalized diagnostic and find out how Aston AI is turning reform into opportunity.
