I’m an accountant in a mid-size collections agency; our new plan moves 30% into a bonus tied to monthly recoveries and 60-day DSO, which makes revenue lumpy while fixed costs stay fixed in a slow Q1. Is this the new normal, or should I push for a higher base to better match expenditures?
Had this happen at a mid-size shop; I got them to switch the bonus to a rolling 3-month average and add a small Q1 draw, which smoothed the hit while keeping upside. Since your metric is “60-day DSO”, ask to pay the 30% off a quarterly average with a guaranteed floor equal to one pay period in Q1; if they balk, then push for a modest base bump tied to slow Q1 coverage.