Two key metrics help measure the financial health of your accounts and the efficiency of your AR recovery efforts: AR Turnover and DSO (Days Sales Outstanding).
AR Turnover: This is the ratio of your net credit sales to the number of times receivables are collected over a specific period. A high AR turnover indicates that your AR recovery team is effectively collecting debts quickly.
DSO (Days Sales Outstanding): This measures the time it takes to collect revenue after a sale. Lower DSO means your team converts accounts receivable faster.
Objectives:
Maintain high AR turnover.
Reduce DSO.
Outsourcing AR recovery services allows you to save time and let specialists focus on achieving these objectives, while you can redirect resources toward core business functions and growth.
Healthcare practices with lower DSO and higher AR turnover enjoy better cash flow. Zemmedex Medical Billing Services ensures minimal DSO, improved AR turnover, and strengthened financial growth through reliable claim denial management and AR recovery services.