{"id":5333,"date":"2020-07-30T08:03:00","date_gmt":"2020-07-30T12:03:00","guid":{"rendered":"http:\/\/199.250.223.35\/~craftbrewery\/?p=5333"},"modified":"2020-06-29T17:07:44","modified_gmt":"2020-06-29T21:07:44","slug":"brewery-performance-metrics","status":"publish","type":"post","link":"https:\/\/craftbreweryfinance.com\/oldversion\/brewery-performance-metrics\/","title":{"rendered":"Brewery Performance Metrics"},"content":{"rendered":"

How well does your brewery manage accounts receivable?<\/strong><\/p>\n

Do you have a solid process and team in place? Do you know you average days to collect?<\/p>\n

What was your bad debt last year as a percentage of sales? How much bad debt is lingering in your accounts receivable right now?<\/p>\n

As brewery owners and managers we work hard to grow sales, but often neglect the work that is needed to collect on the sale.<\/p>\n

The biggest key to success in collections is training your staff to be diligent in monitoring accounts receivable and following up consistently and frequently with your accounts.\u00a0<\/strong><\/p>\n

To measure success in accounts receivable, use a Performance Metric called Days Sales Outstanding.<\/p>\n

Days Sales Outstanding, or DSO, shows you how efficiently you are managing your collections. The calculation works like this:<\/p>\n

Days Sales Outstanding = Accounts Receivable Balance divided by Average Daily Sales<\/em><\/p>\n

Let’s look at an example of how to calculate Days Sales Outstanding:<\/p>\n