Key findings from the 2012 Accounts Receivable Survey from OB10 and The Institute of Financial Operations
This survey was conducted by OB10, the e-Invoicing network, and The Institute of Financial Operations, the authority on the best practices in financial operations.
Here are the key findings:
- The most popular way to deal with late-paying customers (as identified by 61% of respondents) is to call them more often. Rather than implementing late fees (35%) and refusing to take orders (29%), calling may be one of the most effective ways to address late payment while maintaining good customer relationships
- As 29% of respondents use e-invoicing, it suggests that third-party electronic submission is seen more often as a practical solution to streamline the invoicing process
- With an overall IPC score of 6.20, many organisations see room for improvement, as a score of seven indicates a level of good sustainable progress
- 44% of respondents indicated that their customers had offered them early-pay discounts. Of those offered discounts, 66% accepted them
- 50% of respondents indicated that their organisations’ financial results were better in 2011 than they were in 2010. 60% believe their organisations’ financial results will be better in 2012 compared to 2011
The survey included responses from 147 participants, including accounts receivable, credit and IT professionals as well as CEOs, presidents, business owners, CFOs, and COOs from small businesses to Fortune 500 companies in North America and the UK.