Total Uncollectable Balances as a Percentage of Revenue

It’s more important than ever to know how much bad debt (e.g., payments owed that will never be collected from customers) you hold, particularly in a chaotic business environment. When does a finance chief know his or her company is holding too much bad debt, and what can be done about it? This measure is part of a set of Process Efficiency measures that help companies optimize their "manage and process collections" process by minimizing waste and refining resource consumption.