Collection Effectiveness Index: Telling the entire credit and collections story BILLTRUST | WHITE PAPER Your Collection Effectiveness Index (CEI), when coupled with Days Sales Outstanding (DSO), tells a holistic credit and collections story. Defining Collection Effectiveness Index Defining Collection Effectiveness Index CEI is a calculation of a company’s ability to retrieve accounts receivable (AR) from their customers. In other words, CEI compares the amount collected in a given time period to the amount of receivables available for collection. A CEI near 80 percent or above indicates a highly effective collections process, while a CEI 50 percent and below is considered low and should be further evaluated. Why does tracking CEI matter? CEI can directly show you the speed it tak

Join for free to read