Assess your accounts receivable quality, identify risk factors, and discover your recovery potential with our comprehensive diagnostic tool.
Aging Breakdown: Enter the amount due in each aging bucket.
Check the practices your company currently implements:
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Total Outstanding: $0
Based on your scorecard, here's how your recovery potential compares:
Note: LegalCollects charges a 15% contingency fee only on recovered amounts. You pay nothing if we don't recover.
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Learn key metrics and best practices to optimize your accounts receivable management and reduce days sales outstanding.
DSO measures the average number of days it takes to collect payment after a sale. Lower DSO indicates faster collections and better cash flow. Industry benchmarks vary: staffing (20-30 days), construction (30-45 days), SaaS (35-50 days).
Formula: (Accounts Receivable / Annual Revenue) × 365
Categorizing receivables by how long they've been outstanding reveals collection challenges. Invoices over 120 days are 50% less likely to be collected. Regular aging reports help identify problem accounts early and trigger timely follow-up.
Bad debt write-offs significantly impact profitability. A 2% bad debt ratio means losing 2% of sales revenue. Implementing credit policies, automated reminders, and escalation procedures can reduce bad debt by 30-50%.
Industry average: 1-3% for most B2B sectors
Companies with strong AR practices typically achieve 30% better collection rates. Key practices include: invoicing within 48 hours, automated reminders, clear payment terms, regular aging reviews, and escalation protocols.
Agencies typically work on contingency (15-50% fee) but lack legal authority. Attorneys can file suit and enforce judgments, critical for accounts over $5K. California law provides strong creditor protections under the FDCPA.
Extended payment terms strain cash flow and growth. A $1M company collecting in 60 days vs. 30 days requires an additional $50K in working capital. Optimizing DSO is one of the fastest ways to improve financial health.
Every 10-day improvement in DSO = significant cash flow boost
LegalCollects.ai combines attorney expertise with technology to recover California B2B debts efficiently. Our 15% contingency model means you only pay when we recover. We handle staffing, construction, SaaS, professional services, manufacturing, healthcare, and restoration companies.
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