In celebration of the first annual National Accounts Receivable Appreciation Day, we wanted to shine a light on you, the AR professional, and the huge task you are responsible for delivering each and every day.
1. 49% of B2B invoices in America are overdue
Nearly half of all B2B invoices in America are overdue and almost all of B2B businesses in America (93%) have reported receiving late payments.
2. 66 days is the average DSO
50% of global payments are made between 31 and 90 days with 66 days being the average DSO globally. That number is much higher when you look at industries with long manufacturing processes. The Electronics, Machinery and Construction sectors all have average DSOs of above 85 days.
3. 26% of payment delays caused by incorrect information on invoices
Incorrect information on invoices is the reason for ¼ of payment delays in America and 21% of delays are caused by invoices being sent to the wrong person.
4. 400 billion invoices are produced each year
It’s estimated that 400 billion paper and electronic invoices are produced around the world every year. When you include supporting documents and other “invoice-like” documents, that number grows by 5 to 15 times.
5. The US federal government processes 19 million invoices each year
Approximately 40% of the 19 million invoices processed each year by the US federal government are received in paper form. Switching to electronic invoicing could yield up to $260 million in savings each year, according to Office of Management and Budget.
6. 32% of companies use checks as their primary method to receive payment
Almost 1/3 of companies use checks more often than any other payment method for receiving payments. ACH is the second most used method to receive payment (22%) and Credit Cards, including virtual cards, are third (8%).
7. CFO is the #1 most important role
According to a study by Forbes and KPMG, 75% of CEOs from high-performing companies said that the CFO would become the most important role in the company.
From preparing and presenting billions of invoices, to chasing and processing millions of late payments, your job is challenging. But with only 2.1% of receivables in America being written off today, it’s clear that your tireless efforts are making a big impact.
AR pros, we salute you!