{"id":30897,"date":"2025-06-03T08:55:30","date_gmt":"2025-06-03T12:55:30","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=30897"},"modified":"2025-06-03T08:55:32","modified_gmt":"2025-06-03T12:55:32","slug":"27-accounts-receivable-management","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/27-accounts-receivable-management\/","title":{"rendered":"27 accounts receivable management facts every CFO should know"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\t27 accounts receivable management facts every CFO should know\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-06-03T08:55:30-04:00\">June 3, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"27 accounts receivable management facts every CFO should know\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/27-accounts-receivable-management\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p>Managing accounts receivable can be challenging\u2014especially when late payments impact your cash flow. If you\u2019re dealing with persistent delays, you\u2019re not alone. The accounts receivable (AR) statistics below highlight just how widespread these issues are across industries.<\/p>\n\n\n\n<p>From inaccurate invoices to outdated tools, AR teams face real obstacles that slow down collections and impact revenue. Implementing an<a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/accounts-receivable\"> automated accounts receivable management solution<\/a> like <strong><a href=\"https:\/\/www.sage.com\/en-us\/products\/sage-ar-automation\/\">Sage AR Automation<\/a><\/strong> can help streamline processes, improve efficiency, and reduce risk.<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-the-state-of-accounts-receivable\" data-level=\"2\">The state of accounts receivable<\/a><\/li><li><a href=\"#h-why-invoices-get-delayed\" data-level=\"2\">Why invoices get delayed<\/a><\/li><li><a href=\"#h-policy-and-process-gaps\" data-level=\"2\">Policy and process gaps<\/a><\/li><li><a href=\"#h-industry-challenges\" data-level=\"2\">Industry challenges<\/a><\/li><li><a href=\"#h-staffing-and-system-limitations\" data-level=\"2\">Staffing and system limitations<\/a><\/li><li><a href=\"#h-manual-vs-automated-ar-processes\" data-level=\"2\">Manual vs. automated AR processes<\/a><\/li><li><a href=\"#h-the-cost-of-delays-and-debt\" data-level=\"2\">The cost of delays and debt<\/a><\/li><li><a href=\"#h-late-payments-by-industry-2013\" data-level=\"2\">Late payments by industry (2013)<\/a><\/li><li><a href=\"#h-improve-ar-efficiency-with-automation\" data-level=\"2\">Improve AR efficiency with automation<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-state-of-accounts-receivable\"><strong>The state of accounts receivable<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>39% of invoices are paid late<\/strong> in the U.S. (Atradius)<br><\/li>\n\n\n\n<li><strong>48% of customers delay payments<\/strong> beyond terms. (Atradius)<br><\/li>\n\n\n\n<li><strong>52% of businesses<\/strong> report being asked for extended payment terms. (Atradius)<br><\/li>\n\n\n\n<li>Most businesses offer <strong>28-day credit terms<\/strong>, but average days sales outstanding (DSO) is <strong>67 days<\/strong>. (Atradius)<br><\/li>\n\n\n\n<li>Businesses in the Americas lose <strong>51.9% of unpaid receivables<\/strong> not paid within 90 days. (Atradius)<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-invoices-get-delayed\"><strong>Why invoices get delayed<\/strong><\/h2>\n\n\n\n<ol start=\"6\" class=\"wp-block-list\">\n<li><strong>49% of disputes<\/strong> stem from invalid or incorrect purchase order information. (CFO.com)<br><\/li>\n\n\n\n<li><strong>11% of customers<\/strong> say they never received the invoice. (CFO.com)<br><\/li>\n\n\n\n<li><strong>27% of financial executives<\/strong> cite customer cash flow or communication issues as causes of late payments. (CFO.com)<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-policy-and-process-gaps\"><strong>Policy and process gaps<\/strong><\/h2>\n\n\n\n<ol start=\"9\" class=\"wp-block-list\">\n<li>Only <strong>20% of credit departments<\/strong> have formalized credit and collections policies. Of those:<br>\n<ul class=\"wp-block-list\">\n<li>19% update them every 2 years<br><\/li>\n\n\n\n<li>13% update every 3 years<br><\/li>\n\n\n\n<li>15% update only when necessary<br><\/li>\n\n\n\n<li>12% chose \u201cother,\u201d with unclear timelines<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-industry-challenges\"><strong>Industry challenges<\/strong><\/h2>\n\n\n\n<ol start=\"10\" class=\"wp-block-list\">\n<li>In digital advertising:<br><\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>6% of invoices are paid within 30 days<br><\/li>\n\n\n\n<li>94% are paid after 30 days<br><\/li>\n\n\n\n<li>62% take more than 60 days<br><\/li>\n<\/ul>\n\n\n\n<ol start=\"11\" class=\"wp-block-list\">\n<li><strong>50% of companies<\/strong> wait <strong>10\u201325 days<\/strong> for invoice approval. (Paystream Advisors)<br><\/li>\n\n\n\n<li><strong>17% of business customers<\/strong> ignore supplier credit terms. (Credit Research Foundation)<br><\/li>\n\n\n\n<li><strong>61% of late payments<\/strong> result from administrative errors or receiving the invoice too late. (Credit Research Foundation)<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-staffing-and-system-limitations\"><strong>Staffing and system limitations<\/strong><\/h2>\n\n\n\n<ol start=\"14\" class=\"wp-block-list\">\n<li><strong>25% of credit departments<\/strong> report inadequate staffing. (Credit Today)<br><\/li>\n\n\n\n<li>Nearly <strong>48% of SMBs<\/strong> rely on basic accounting or ERP tools for AR. (e2b teknologies)<br><\/li>\n\n\n\n<li><strong>53% of midmarket B2B companies<\/strong> still use spreadsheets to manage AR. (e2b teknologies)<br><\/li>\n\n\n\n<li>And <strong>94% of spreadsheets contain errors<\/strong>. (Tuck School of Business, Dartmouth College)<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-manual-vs-automated-ar-processes\"><strong>Manual vs. automated AR processes<\/strong><\/h2>\n\n\n\n<ol start=\"18\" class=\"wp-block-list\">\n<li>Companies using <strong>manual AR processes<\/strong> spend:<br><\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>15% of time prioritizing activities<br><\/li>\n\n\n\n<li>15% gathering customer data<br><\/li>\n\n\n\n<li>Only 20% engaging customers<br><\/li>\n<\/ul>\n\n\n\n<ol start=\"19\" class=\"wp-block-list\">\n<li>Companies using <strong>AR automation<\/strong> spend:<br><\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Just 6% prioritizing activities<br><\/li>\n\n\n\n<li>6% gathering data<br><\/li>\n\n\n\n<li><strong>62% engaging customers<\/strong> on payment<br><\/li>\n<\/ul>\n\n\n\n<ol start=\"20\" class=\"wp-block-list\">\n<li>Only <strong>4.13% of midmarket B2B companies<\/strong> use dedicated AR automation tools\u2014meaning over <strong>95% are managing AR the hard way<\/strong>. (e2b teknologies)<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-cost-of-delays-and-debt\"><strong>The cost of delays and debt<\/strong><\/h2>\n\n\n\n<ol start=\"21\" class=\"wp-block-list\">\n<li>On average, companies write off <strong>4% of accounts receivable<\/strong> as bad debt.<br><\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For a business with $10M in revenue, that\u2019s a <strong>$400,000<\/strong> annual loss.<br><\/li>\n<\/ul>\n\n\n\n<ol start=\"22\" class=\"wp-block-list\">\n<li>Aging receivables quickly become uncollectible:<br><\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>26% uncollectible after 90 days<br><\/li>\n\n\n\n<li>70% after 180 days<br><\/li>\n\n\n\n<li>90% after one year (US Census Bureau)<br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-late-payments-by-industry-2013\"><strong>Late payments by industry (2013)<\/strong><\/h2>\n\n\n\n<ol start=\"23\" class=\"wp-block-list\">\n<li><strong>75% of UK small businesses<\/strong> reported being impacted by late payments.<br><\/li>\n\n\n\n<li><strong>Overall U.S. past due average<\/strong>: 17.68% (Corterra)<br><\/li>\n\n\n\n<li><strong>Construction industry<\/strong>: 25.37%<br><\/li>\n\n\n\n<li><strong>Manufacturing industry<\/strong>: 20.63%<br><\/li>\n\n\n\n<li><strong>Transportation industry<\/strong>: 20.37%<br><\/li>\n<\/ol>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Transform your Accounts Payable Process with AP Bill Automation<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Download this infographic to learn more about how Sage Intacct AP Automation can transform your manual AP processes.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"##gate-3da0629b-f258-4b81-a916-8bf233222ef8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1406088800-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1406088800-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-improve-ar-efficiency-with-automation\"><strong>Improve AR efficiency with automation<\/strong><\/h2>\n\n\n\n<p>If your team still relies on spreadsheets or manual reminders, it may be time to explore how <a href=\"https:\/\/www.sage.com\/en-us\/products\/sage-ar-automation\/\"><strong>Sage AR Automation<\/strong> <\/a>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.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Explore 27 key accounts receivable stats to understand AR challenges. Learn how AR automation can improve efficiency and reduce late payments.<\/p>\n","protected":false},"author":1774,"featured_media":20215,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[43],"tags":[],"business_type":[],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[],"coauthors":[509],"class_list":["post-30897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters"],"sage_meta":{"region":"en-us","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1369567969-1.jpg","imagine_tags":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/30897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1774"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=30897"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/30897\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/20215"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=30897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=30897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=30897"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=30897"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=30897"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=30897"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=30897"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=30897"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=30897"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=30897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}