Top 3 Ways to Improve Your Accounts Receivable Turnover Ratio

One of the best ways you can gauge the performance of your accounts receivable management strategies is by calculating your accounts receivable turnover (ART) ratio.  ART helps measure and describe the efficiency of a company in collecting their credit sales. The accounts receivable turnover ratio is a good indicator of whether or not your credit and collections processes and terms are benefiting for your company. Generally a high value is an indication that your accounts receivable management strategies are working, a low value may indicate inefficiencies in your collections.  Different industries have different average ratios, so be sure you are comparing yours against other companies in your industry to see how you measure up. There are a few things you can do to improve your ART including the following: Continue reading