The FinFloh Blog

An Aging Report—also known as an Accounts Receivable Aging Report, AR Aging Report, or Receivable Aging Report—is a vital financial tool that helps businesses track outstanding invoices and monitor customer payment behavior. By organizing receivables according to the length of time invoices have been unpaid, finance teams can identify overdue accounts, assess credit risks, and […]

When it comes to managing accounts receivable (AR) and improving cash flow, few metrics are as closely tracked as Days Sales Outstanding (DSO) esp – Best Possible DSO vs Standard DSO. But there’s a growing realization among CFOs and finance teams that Standard DSO alone doesn’t tell the full story. That’s where Best Possible DSO […]

Definition A fractional CFO (also called an outsourced CFO or virtual CFO) is a senior finance expert who supports a company on a part-time, contract, or project basis instead of being hired full time. They offer the same strategic financial leadership as a traditional CFO but at a significantly lower cost. Many startups, growing SMEs, […]

Getting It Right Before It’s Too Late For finance teams, invoices are more than just documents — they are commitments. Yet, across industries, errors in invoices remain one of the leading causes of payment delays, revenue leakage, and strained customer relationships. With invoice validation being manual and siloed, finance teams perform checks and actions scattered […]

Every finance team knows the feeling. You send an invoice or a payment reminder… and then the replies start flooding in. “Here’s the payment proof.”“Can you resend the invoice?”“There’s a mistake on line item 3 –  please fix.”“We’ll pay by next week, not this one.” Whether it comes through email or chat, your AR team […]

It’s a story finance teams know all too well. The collections team is following up consistently. Escalations are happening on time. Every interaction is logged and tracked. And yet – Days Sales Outstanding – DSO reduction doesn’t happen. For many mid-market and enterprise finance teams, this stagnation feels baffling. On paper, everything seems to be […]

Definition : Credit risk reduction refers to the strategies and practices implemented by businesses to minimize the likelihood of financial losses due to unpaid debts or defaults from clients, customers, or partners. In the context of accounts receivables, credit risk reduction is essential for maintaining cash flow, securing profits, and ensuring long-term business stability. Table […]

Credit Risk Scoring Model Definition : A Credit Risk Scoring Model is a mathematical tool lenders, financial institutions, and credit agencies use to evaluate the likelihood of a borrower defaulting on a loan or credit obligation. This model assigns a numerical value, or “credit score,” based on an individual’s or business’s creditworthiness. It considers various […]

Credit Sales Definition : Credit sales refer to transactions in which a business allows its customers to purchase goods or services without paying immediately. Instead, the customer agrees to pay the business at a later date, typically within a specific time frame. This practice is common in industries where businesses want to build customer loyalty […]

Credit Scoring Engine Definition : A Credit Scoring Engine is a sophisticated algorithm-driven system designed to evaluate the creditworthiness of individuals or businesses. It leverages a wide range of data points, including financial history, transaction behavior, and other relevant factors, to calculate a credit score that reflects the likelihood of a borrower repaying their debt. […]

Credit Union Definition : A credit union is a nonprofit, member-owned financial cooperative that provides a wide range of financial services. Unlike traditional banks, which are typically for-profit institutions, credit unions operate with the primary goal of serving their members. As a member, you become a part-owner, giving you a say in the credit union’s […]

Definition : Current liabilities are a company’s short-term financial obligations that are due within one year or within the normal operating cycle of the business—whichever is longer. These liabilities typically arise from a company’s day-to-day operations and are settled using current assets, such as cash or accounts receivable. In accounting, managing the liabilities effectively is […]