Why You Should Know Your DSO
DSO, or Days Sates Outstanding, is a performance benchmark for accounts receivable. The DSO of a company's receivables reveals what your company can expect in the near and long term future with your cash flow. The turnaround speed, in days, of your company's receivables is a thermometer for the health of your AR department and credit policies. It is super easy to calculate your DSO.
How Collection Fees Work in Canada
In Canada, the fees a collection agency charges are usually contingency based, or a no collection - no fee, percentage basis on the actual monies collected. Collection agencies across Canada usually have similar agency fee guidelines for contingency debt collection services. Commercial and consumer collection agency rates are based on age of the debt, the type of debt and the amount of the debt being listed for collection.