Accounts receivable dashboard

Setting up an accounts receivable strategy is necessary to secure your cash flow. Systematic follow-ups on every invoice, combined with best practices such as automation, improve collection efficiency. But to measure the impact of collections on your company’s finances, you need access to reliable, up-to-date reporting data. Here are our tips to set up reliable accounts receivable dashboard.

Ensure reliable data

To produce reporting you can depend on, it must be based on accurate data. The best way to ensure this is to reduce manual handling during data collection and processing. Whether importing or updating, direct integration between your accounts receivable dashboard and your accounting data lowers the risk of error.

Automate your dashboard updates

Keeping your accounts receivable dashboard as up to date as possible makes it much easier to analyse. Ideally, real-time updates are possible through integrations between your reporting and accounting tools. If not, don't panic! The important thing is to know what period is covered by the data you are analysing. If they are updated once a day or a week, then just take it into account in your projections.

Several indicators allow you to monitor and analyse your accounts receivable dashboard. Each one offers a different point of view on your performances. In LeanPay's dashboard, you'll find DSO, aging balance, cash flow forecasts, outstanding amount, top debtors and top invoices.

DSO (Days Sales Outstanding)

The DSO or average payment term is a fundamental indicator in the analysis of your accounts receivable dashboard. It represents the average number of days between issuing an invoice and receiving payment. A high DSO spells trouble for your cash flow, as it means a large part of your turnover is still unpaid.Your goal should be to reduce this figure and keep it low.

Aging balance

With LeanPay, you can track and analyse your aging customer balance. Integrating this indicator into your accounts receivable dashboard will facilitate the prioritisation of your receivables actions. The aged balance sorts unpaid invoices by how long they’ve been overdue, showing the amount and delay. This lets you identify which to chase first and bring your DSO down faster.

Cash flow forecasts

Cash flow forecasts help you anticipate future cash flow. In LeanPay, they are calculated based on the average payment time over the last three months. The goal here is to have an estimate based on the reality of your customer's payments and not on a due date. This gives you realistic estimates for more informed decision-making.

Outstanding amount

In our accounts receivable dashboard, we offer you an interactive outstanding amount. You can see amounts broken down by status (not due, overdue, in dispute, in litigation, credit notes, etc.) and by client.

Top debtors and top invoices

The top debtors correspond to the 6 companies with the highest outstanding amount. The top invoices are the six overdue invoices with the highest value. These two indicators can be found in our accounts receivable dashboard and allows you to prioritise your reminders.

To measure the overall impact of your collection efforts, we recommend starting from a baseline and reviewing progress after a few months. You’ll see impact across three areas:

• Cash improvement: this is a combination between additional amounts collected thanks to collection actions and a reduction in the average payment period (DSO)
• Faster collections: you will see this with the reduction in the “average age” of receivables and through the increase in the number of invoices paid on time.
• Collection efficiency. You can combine 3 KPIs to analyse it: cost per recovered invoice, invoice cohorts and average time to collect per invoice.

Compare these indicators over a specific period (monthly, quarterly, annually) with and without collection actions to assess their actual impact. You can also segment by client type, industry or other relevant criteria to identify where your actions were most effective.

‍