Money Matters

27 accounts receivable management facts every CFO should know

Explore 27 key accounts receivable stats to understand AR challenges. Learn how AR automation can improve efficiency and reduce late payments.

Managing accounts receivable can be challenging—especially when late payments impact your cash flow. If you’re dealing with persistent delays, you’re not alone. The accounts receivable (AR) statistics below highlight just how widespread these issues are across industries.

From inaccurate invoices to outdated tools, AR teams face real obstacles that slow down collections and impact revenue. Implementing an automated accounts receivable management solution like Sage AR Automation can help streamline processes, improve efficiency, and reduce risk.

The state of accounts receivable

1. 39% of invoices are paid late in the U.S. (Atradius)
   
2. 48% of customers delay payments beyond terms. (Atradius)
   
3. 52% of businesses report being asked for extended payment terms. (Atradius)
   
4. Most businesses offer 28-day credit terms, but average days sales outstanding (DSO) is 67 days. (Atradius)
   
5. Businesses in the Americas lose 51.9% of unpaid receivables not paid within 90 days. (Atradius)
   

Why invoices get delayed

6. 49% of disputes stem from invalid or incorrect purchase order information. (CFO.com)
   
7. 11% of customers say they never received the invoice. (CFO.com)
   
8. 27% of financial executives cite customer cash flow or communication issues as causes of late payments. (CFO.com)
   

Policy and process gaps

9. Only 20% of credit departments have formalized credit and collections policies. Of those:
   
   • 19% update them every 2 years
     
   • 13% update every 3 years
     
   • 15% update only when necessary
     
   • 12% chose “other,” with unclear timelines

Industry challenges

10. In digital advertising:
    

• 6% of invoices are paid within 30 days
  
• 94% are paid after 30 days
  
• 62% take more than 60 days
  

11. 50% of companies wait 10–25 days for invoice approval. (Paystream Advisors)
    
12. 17% of business customers ignore supplier credit terms. (Credit Research Foundation)
    
13. 61% of late payments result from administrative errors or receiving the invoice too late. (Credit Research Foundation)
    

Staffing and system limitations

14. 25% of credit departments report inadequate staffing. (Credit Today)
    
15. Nearly 48% of SMBs rely on basic accounting or ERP tools for AR. (e2b teknologies)
    
16. 53% of midmarket B2B companies still use spreadsheets to manage AR. (e2b teknologies)
    
17. And 94% of spreadsheets contain errors. (Tuck School of Business, Dartmouth College)
    

Manual vs. automated AR processes

18. Companies using manual AR processes spend:
    

• 15% of time prioritizing activities
  
• 15% gathering customer data
  
• Only 20% engaging customers
  

19. Companies using AR automation spend:
    

• Just 6% prioritizing activities
  
• 6% gathering data
  
• 62% engaging customers on payment
  

20. Only 4.13% of midmarket B2B companies use dedicated AR automation tools—meaning over 95% are managing AR the hard way. (e2b teknologies)
    

The cost of delays and debt

21. On average, companies write off 4% of accounts receivable as bad debt.
    

• For a business with $10M in revenue, that’s a $400,000 annual loss.
  

22. Aging receivables quickly become uncollectible:
    

• 26% uncollectible after 90 days
  
• 70% after 180 days
  
• 90% after one year (US Census Bureau)
  

Late payments by industry (2013)

23. 75% of UK small businesses reported being impacted by late payments.
    
24. Overall U.S. past due average: 17.68% (Corterra)
    
25. Construction industry: 25.37%
    
26. Manufacturing industry: 20.63%
    
27. Transportation industry: 20.37%
    

Improve AR efficiency with automation

If your team still relies on spreadsheets or manual reminders, it may be time to explore how Sage AR Automation can help. With features like automated invoice delivery, document tracking, and customer communication tools, Sage helps finance teams reduce aging receivables, save time, and improve cash flow.