Just say no. (abandoning ineffective measures of collection performance) From: Business Credit | Date: May 1, 1996| Author: Gallinger, George W. | COPYRIGHT 1996 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

Credit managers should abandon measures of collection performance that are ineffective. Several alternative techniques they can use for measuring the effectiveness of collecting outstanding accounts receivable are discussed in the book 'An Evaluation of Techniques for Monitoring Accounts Receivable' published by the National Association of Credit Management's Education Dept. These methods include sales-weighted DSO and variance models, which effectively explain investment in receivables.