Welcome to ‘My key KPI’, a new weekly content series where we ask CFOs and FDs what metrics and measures they use to drive their businesses forward.
The aim is to understand how different finance professionals, across a broad array of industries and sectors, use data to inform their decision making.
My Key KPI: Debtor days
Distinctly is normally on the other side of journalism. The PR agency helps businesses navigate the maze of press coverage.
The company is currently focused on growth. And with ambitious growth plans, cash has become an important focus for Walker.
"As with any business, there are a number of KPI's that we pay close attention to on a monthly basis to ensure the smooth running of the agency. But it is cash which makes it possible to achieve those objectives.
"Accordingly, cashflow is particularly important, so we have recently introduced a new KPI into our monthly reporting - Debtor Days."
This is the amount of debtors (less VAT) Distinctly has divided by the turnover of the month, multiplied by 30. "This enables us to keep a close eye on the length of time it takes for clients to settle invoices.
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About Francois Badenhorst
I'm AccountingWEB's business editor. Feel free to get in touch with comments, tips, scoops or irreverent banter.