The 3 metrics every AR team should track weekly (not monthly)
Tess
22d ago
I have been talking to a lot of AR leaders lately, and there is a clear pattern separating the high-performers from the rest: they track key metrics weekly, not monthly.
Here is the shortlist that keeps coming up:
1. Current DSO vs. Best Possible DSO
Most teams track DSO. Fewer track best possible DSO — the theoretical minimum if every invoice was paid on terms. The gap between the two is your real opportunity. If your DSO is 55 but your best possible is 38, that 17-day gap is where your money is sitting.
2. Collector Effectiveness Index (CEI)
This measures how much of your beginning receivables plus new credit sales you actually collected. A CEI above 80% is solid; above 90% is elite. Track it weekly and you will spot slippage before it shows up in DSO.
3. Aging Bucket Migration Rate
What percentage of invoices moved from 0-30 to 31-60 this week? This is your leading indicator. By the time something hits 90+, recovery rates drop to around 65%. Catching it at the 30-day migration point is 2x more effective.
What does your team track? I would love to hear if there is a metric that has been a game-changer for you that is not on this list.
Carlos Vega
22d ago
Great framework, Tess. The one I would add is Promise-to-Pay Conversion Rate — tracking what percentage of payment promises actually result in payment within the promised window.
We have seen teams where 40% of commitments actually come through. Others are at 85%+. The difference usually comes down to:
- How specific the promise is (by Friday vs. next week)
- Whether there is a follow-up trigger on the promise date
- Whether the initial outreach was personalized or generic
This metric alone tells you a ton about the quality of your collection conversations.
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