GITNUXREPORT 2025

Accounts Receivable Statistics

Effective accounts receivable management reduces DSO, improves cash flow significantly.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

70% of companies report that their accounts receivable processes are not automated

Statistic 2

Small and medium enterprises (SMEs) experience cash flow issues due to unpaid invoices in approximately 60% of cases

Statistic 3

Accounts receivable factoring is used by 48% of mid-sized enterprises to manage cash flow

Statistic 4

Enterprises that implement electronic invoicing see a 17% reduction in DSO

Statistic 5

Automated credit management reduces bad debt write-offs by an average of 10-15%

Statistic 6

Over 50% of companies report that improving accounts receivable is a key strategy for cash flow management

Statistic 7

The average age of overdue receivables globally is approximately 60 days

Statistic 8

The use of predictive analytics in accounts receivable can increase collection rates by up to 20%

Statistic 9

65% of companies see an improvement in cash flow after automating collections processes

Statistic 10

The average cost to collect a dollar of receivables is about 4.5%

Statistic 11

43% of companies experience delays in accounts receivable processing due to manual workflows

Statistic 12

The average time to resolve accounts receivable disputes is approximately 5 days

Statistic 13

30% of companies plan to increase their investment in accounts receivable automation in the next year

Statistic 14

55% of CFOs cite cash flow forecasting as a challenge related to accounts receivable management

Statistic 15

Incorporating AI into AR processes can decrease collection times by up to 30%

Statistic 16

About 6% of B2B invoices are disputed, resulting in delayed cash inflows

Statistic 17

40% of organizations manually reconcile accounts receivable, which increases errors and delays

Statistic 18

Implementing a centralized AR platform can reduce DSO by up to 22%

Statistic 19

Companies focusing on receivables analysis experience 14% better cash conversion cycles

Statistic 20

Automation of credit approval processes can improve approval speed by 50%

Statistic 21

66% of organizations consider receivables management as a strategic priority

Statistic 22

The average accounts receivable collection period across industries is approximately 55 days

Statistic 23

Small businesses often have an average accounts receivable turnover ratio of 12

Statistic 24

The median days sales outstanding (DSO) for manufacturing companies is around 45 days

Statistic 25

Companies with automated accounts receivable processes reduce their DSO by approximately 13 days

Statistic 26

The average percentage of overdue accounts receivable is about 4.5% across various industries

Statistic 27

The average days sales outstanding (DSO) for retail companies is around 36 days

Statistic 28

Invoice discounting can improve cash flow for businesses by up to 30%

Statistic 29

The average collection effectiveness index (CEI) for accounts receivable is approximately 80%

Statistic 30

The cost of poor accounts receivable management can reach up to 5% of revenue in some industries

Statistic 31

Companies with comprehensive accounts receivable policies experience 15% less days sales outstanding (DSO)

Statistic 32

Small business accounts receivable turnover ratio averages 8 to 12 times annually

Statistic 33

The average overdue receivable amount in SMBs is approximately $27,000

Statistic 34

The average percentage of overdue invoices in the European Union is approximately 4%

Statistic 35

The global accounts receivable outsourcing market is projected to grow at a CAGR of 6.2% from 2021 to 2028

Statistic 36

The average proportion of businesses using cloud-based AR solutions is approximately 52%

Statistic 37

The global AR software market is expected to reach $2.8 billion by 2025, growing at a CAGR of 8.5%

Statistic 38

The average percentage of collateralized receivables in supply chain finance is around 30%

Statistic 39

85% of businesses prefer electronic payments due to quicker processing times

Statistic 40

42% of small businesses report late payments affecting their ability to pay suppliers on time

Statistic 41

The percentage of receivables paid on time varies significantly by industry, with healthcare averaging 90% on-time payment

Statistic 42

Approximately 75% of invoices are paid electronically, reducing processing times significantly

Statistic 43

60% of businesses report that invoice errors lead to delayed payments

Statistic 44

Companies that offer early payment discounts see a 25% increase in early payments

Statistic 45

The proportion of invoices paid late varies by region, with Latin America experiencing a 35% late payment rate

Statistic 46

Firms that enforce stricter credit policies see a 10% reduction in overdue accounts

Statistic 47

The majority of bad debt arises from collections more than 90 days past due

Statistic 48

Implementing a credit risk management system reduces delinquency rates by 18%

Statistic 49

58% of companies use some form of credit insurance to protect against bad debts

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Key Highlights

The average accounts receivable collection period across industries is approximately 55 days
Small businesses often have an average accounts receivable turnover ratio of 12
The median days sales outstanding (DSO) for manufacturing companies is around 45 days
70% of companies report that their accounts receivable processes are not automated
Companies with automated accounts receivable processes reduce their DSO by approximately 13 days
The global accounts receivable outsourcing market is projected to grow at a CAGR of 6.2% from 2021 to 2028
The average percentage of overdue accounts receivable is about 4.5% across various industries
Small and medium enterprises (SMEs) experience cash flow issues due to unpaid invoices in approximately 60% of cases
Accounts receivable factoring is used by 48% of mid-sized enterprises to manage cash flow
The average days sales outstanding (DSO) for retail companies is around 36 days
Invoice discounting can improve cash flow for businesses by up to 30%
Enterprises that implement electronic invoicing see a 17% reduction in DSO
85% of businesses prefer electronic payments due to quicker processing times

Did you know that while the average accounts receivable collection period hovers around 55 days, companies leveraging automation and electronic invoicing are cutting that time by up to 17%, highlighting the critical role of modern strategies in enhancing cash flow and financial health?

Accounts receivable management and automation

70% of companies report that their accounts receivable processes are not automated
Small and medium enterprises (SMEs) experience cash flow issues due to unpaid invoices in approximately 60% of cases
Accounts receivable factoring is used by 48% of mid-sized enterprises to manage cash flow
Enterprises that implement electronic invoicing see a 17% reduction in DSO
Automated credit management reduces bad debt write-offs by an average of 10-15%
Over 50% of companies report that improving accounts receivable is a key strategy for cash flow management
The average age of overdue receivables globally is approximately 60 days
The use of predictive analytics in accounts receivable can increase collection rates by up to 20%
65% of companies see an improvement in cash flow after automating collections processes
The average cost to collect a dollar of receivables is about 4.5%
43% of companies experience delays in accounts receivable processing due to manual workflows
The average time to resolve accounts receivable disputes is approximately 5 days
30% of companies plan to increase their investment in accounts receivable automation in the next year
55% of CFOs cite cash flow forecasting as a challenge related to accounts receivable management
Incorporating AI into AR processes can decrease collection times by up to 30%
About 6% of B2B invoices are disputed, resulting in delayed cash inflows
40% of organizations manually reconcile accounts receivable, which increases errors and delays
Implementing a centralized AR platform can reduce DSO by up to 22%
Companies focusing on receivables analysis experience 14% better cash conversion cycles
Automation of credit approval processes can improve approval speed by 50%
66% of organizations consider receivables management as a strategic priority

Accounts receivable management and automation Interpretation

Despite over two-thirds of companies lagging in automation, leveraging advanced AR tools—from electronic invoicing to AI—can slash days sales outstanding by up to 22%, cut bad debts by 15%, and transform receivables into strategic assets, proving that in the race for cash flow agility, automation isn't just smart—it's essential.

Financial performance indicators and benchmarks

The average accounts receivable collection period across industries is approximately 55 days
Small businesses often have an average accounts receivable turnover ratio of 12
The median days sales outstanding (DSO) for manufacturing companies is around 45 days
Companies with automated accounts receivable processes reduce their DSO by approximately 13 days
The average percentage of overdue accounts receivable is about 4.5% across various industries
The average days sales outstanding (DSO) for retail companies is around 36 days
Invoice discounting can improve cash flow for businesses by up to 30%
The average collection effectiveness index (CEI) for accounts receivable is approximately 80%
The cost of poor accounts receivable management can reach up to 5% of revenue in some industries
Companies with comprehensive accounts receivable policies experience 15% less days sales outstanding (DSO)
Small business accounts receivable turnover ratio averages 8 to 12 times annually
The average overdue receivable amount in SMBs is approximately $27,000
The average percentage of overdue invoices in the European Union is approximately 4%

Financial performance indicators and benchmarks Interpretation

While the average DSO of 55 days and a mere 4.5% overdue rate suggest steady cash flow, automating receivables and proactive policies can slash DSO by nearly half, transforming sluggish collections into a leaner, more profitable machine—proving that in accounts receivable, a little efficiency pays big dividends.

Market trends and industry insights

The global accounts receivable outsourcing market is projected to grow at a CAGR of 6.2% from 2021 to 2028
The average proportion of businesses using cloud-based AR solutions is approximately 52%
The global AR software market is expected to reach $2.8 billion by 2025, growing at a CAGR of 8.5%
The average percentage of collateralized receivables in supply chain finance is around 30%

Market trends and industry insights Interpretation

As the global accounts receivable landscape accelerates toward a $2.8 billion industry fueled by cloud adoption and a steady 6.2% CAGR, it’s clear that businesses are increasingly embracing digital and collateralized solutions to turn receivables into strategic assets rather than just overdue notices.

Payment and collection behaviors

85% of businesses prefer electronic payments due to quicker processing times
42% of small businesses report late payments affecting their ability to pay suppliers on time
The percentage of receivables paid on time varies significantly by industry, with healthcare averaging 90% on-time payment
Approximately 75% of invoices are paid electronically, reducing processing times significantly
60% of businesses report that invoice errors lead to delayed payments
Companies that offer early payment discounts see a 25% increase in early payments
The proportion of invoices paid late varies by region, with Latin America experiencing a 35% late payment rate

Payment and collection behaviors Interpretation

While 85% of businesses favor electronic payments for their speed and efficiency, the persistent 42% of small businesses struggling with late payments—especially in regions like Latin America—highlight that even in a digital age, invoice errors and delayed dues continue to challenge cash flow, making early discounts and industry-specific practices vital for smoother receivables management.

Risk management and credit policies

Firms that enforce stricter credit policies see a 10% reduction in overdue accounts
The majority of bad debt arises from collections more than 90 days past due
Implementing a credit risk management system reduces delinquency rates by 18%
58% of companies use some form of credit insurance to protect against bad debts

Risk management and credit policies Interpretation

While tighter credit policies and better risk management notably reduce overdue and delinquent accounts, the persistent reliance on credit insurance—emacting a financial safety net—suggests that even cautious firms recognize the unpredictable nature of bad debts.