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The Two Metrics Every AR Team Should Track

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The Two Metrics Every AR Team Should Track

Two numbers run a healthy AR operation.

DSO tells you how fast you're collecting.
Response rate tells you if it's about to get worse.

DSO is a lagging metric — it confirms a problem that's already 30 days old.
Response rate is the early warning. When customers stop replying, cash stops flowing. Every time.

Watch them together:
↳ High response + low DSO = you're winning, don't change a thing
↳ Low response + high DSO = stop sending emails, pick up the phone
↳ Low response + low DSO = autopay accounts, leave them alone
↳ High response + high DSO = process friction, fix it internally

Most teams obsess over DSO and ignore response rate entirely.

That's why the same conversations keep happening every quarter.