RedView provides charts for the analysis of the firm’s debtor days performance.
Debtor days is a powerful financial statistic that allows you to understand the firm's debt collection performance at a glance. In essence, this is the average number of days it takes for invoices to be collected.
As a KPI it is easy to understand because it is a standalone number – which can be measured against your firm’s stated Payment Terms. In a perfect world your Debtor Days should match your client payment terms, as that means you are being paid “on time”. A Debtor days value less than your payment terms is even better.
However when debtor days is higher – you should investigate the possible reasons and take action - because getting paid on time or earlier is one of the easiest ways to increase the firm's working capital.
The Debtor Days charts calculates the statistic for the firm as a whole and then options are available with breakdowns by Person Acting, Person Responsible, Matter Category and Matter Type so that the debt collection performance of different people and work types can be understood.
Drilling down on chart elements will provide further details of the matters involved for closer review. Alongside your debtors aging graphs, you can quickly drill into possible collection issues.
The RedView Team