Accounts receivable performance metrics: The science of success
Chemistry class was never this profitable. Get the scientific elements of a healthy cash flow in one periodic table.
25+ metrics for AR measurement
Need a formula to elevate your accounts receivable performance metrics? Here’s a simple approach for measuring the impact of AR.
What's in each element?
Tips for using this interactive periodic table:
- Click into each metric for the full definition and its impact
- Target results help you define goals for the AR organization
- Discover resources for heightening AR performance metrics
Periodic table of accounts receivable performance metrics
Credit
Cs
Credit Sales
Exec
Bd
Bad Debt Ratio
Exec
At
Approval Times
Mgmt
Ar
Approval Rates
Mgmt
Ca
Credit Approved
Mgmt
Cm
Credit Line Management
Mgmt
Ac
Application Completion %
ops
Invoicing
Oi
On-Time Invoice Delivery Rate
Exec
Id
Invoice Distribution
Mgmt
Ia
First-Time Invoice Accuracy
Mgmt
Er
AP Portal Upload Exception Rate
ops
Payments
Dtp
Days to Pay
Exec
Or
Interchange Optimization Rate
Mgmt
Rr
Surcharging Recovery Rate
Mgmt
Tp
Touchless Payments
Mgmt
Pm
Payment Mix
ops
Cash App
Dtc
Days to Cash Application
Exec
Mr
Match Rates
Mgmt
Lmr
Line-Item Match Rate
Mgmt
Dr
Decoupled Remittances
ops
Collections
Dso
Days Sales Outstanding
Exec
Cei
Collections Effectiveness Index
Exec
Ao
Total AR Overdue
Mgmt
Dd
Average Days Delinquent
Mgmt
Tr
Average AR Turnover Ratio
Mgmt
Rc
Receivables Collected
Mgmt
Adr
Average Daily Receivables
ops
Cs
Credit Sales
The percentage of sales transactions not receiving immediate payment. Customer agrees to pay based on agreed-upon credit terms.
Reporting Level
Executive
Target Result
>80%
Bd
Bad Debt Ratio
The proportion of receivables expected to result in a write-off. An important KPI reflecting the effectiveness of financial risk management.
Reporting Level
Executive
Target Result
<1–3%
At
Approval Times
Amount of time it takes to approve/deny credit applications. The faster the better. Similar to average days to decision.
Reporting Level
Mid-Level Management
Target Result
1–2 days
Ar
Approval Rates
The percentage of submitted credit applications that are approved. Balancing approval rates maximize sales while minimizing financial risk.
Reporting Level
Mid-Level Management
Target Result
90%
Ca
Credit Approved
The total dollar amount of credit authorized for customer use, allowing them to purchase goods or services on credit terms.
Reporting Level
Mid-Level Management
Target Result
70-90% of total sales pipeline
Cm
Credit Line Management
The percentage of accounts that are overdue. Indicates how well customer credit limits are managed over time — key for handling overall credit risk.
Reporting Level
Mid-Level Management
Target Result
<5%
Ac
Application Completion Percentage
The number of applications that are fully completed. Incomplete applications delay credit extensions and sales. Similar to submit rate.
Reporting Level
AR Operations
Target Result
90%
Oi
On-Time Invoice Delivery Rate
The percentage of invoices delivered to customers accurately and on time, according to agreed-upon terms. Indicates efficiency and reliability.
Reporting Level
Executive
Target Result
98%
Id
Invoice Distribution
Measures the percentage of invoices sent electronically and tracks the methods used to send invoices (e.g., email, print, AP portals).
Reporting Level
Mid-Level Management
Target Result
>75%
Ia
First-Time Invoice Accuracy
Percentage of invoices that are correct when they are first generated and sent to the customer — critical for reducing disputes and short pays.
Reporting Level
Mid-Level Management
Target Result
97%
Er
AP Portal Exception Rate
Measures how frequently invoices fail to upload correctly to customer AP portals. High exception rates indicate issues like missing PO numbers.
Reporting Level
AR Operations
Target Result
<15%
Dtp
Days to Pay
The average time between the invoice date and the payment date. Shows the velocity of remittance and is useful for performance benchmarking.
Reporting Level
Executive
Target Result
<90
Or
Level 2/3 Intercharge Optimization Rate
Measures whether enhanced data is provided with credit card payments to reduce interchange fees. This can help lower card acceptance costs.
Reporting Level
Mid-Level Management
Target Result
99%+
Rr
Surcharging Recovery Rate
The percentage of card processing fees that are successfully recouped or passed on to customers instead of being absorbed by the company.
Reporting Level
Mid-Level Management
Target Result
80%+
Tp
Touchless Payments
The portion of payments that are processed without manual intervention. Indicates efficiency and straight-through processing.
Reporting Level
Mid-Level Management
Target Result
100%
Pm
Payment Mix
The proportion of payments received through different methods like ACH, card, and check. Understanding mix can help reduce checks and costs.
Reporting Level
AR Operations
Target Result
A diverse, digital mix
Dtc
Days to Cash Application
The number of days it takes to apply a payment to the correct customer invoice. Reflects the efficiency of your cash application process.
Reporting Level
Executive
Target Result
1 day
Mr
Match Rates
Measures how often incoming payments are automatically matched to the correct open invoices. It’s a key indicator of cash application efficiency.
Reporting Level
Mid-Level Management
Target Result
85–95%+
Lmr
Line-Item Match Rate
Similar to envelope match rate, this more granular metric provides a deeper view into every line item matched within a single payment (envelope).
Reporting Level
Mid-Level Management
Target Result
85–95%+
Dr
Decoupled Remittances
The amount or frequency of payments where the remittance data is sent separately from the payment itself. This complicates reconciliation.
Reporting Level
AR Operations
Target Result
<10% of all payments
Dso
Days Sales Outstanding
Measures how long it takes to collect payment after a sale is made. Reflects both the health of cash flow and the efficiency of collections.
Reporting Level
Executive
Target Result
Cei
Collections Effectiveness Index
Measures how much of the collectible accounts receivable was actually collected during a specific time period. This metric is often used with DSO.
Reporting Level
Executive
Target Result
80–90%
Ao
Total AR Overdue
The total amount of accounts receivable that is overdue in a given period. Increases indicate poor payment behaviors or ineffective collections.
Reporting Level
Mid-Level Management
Target Result
<10–15% of total AR
Dd
Average Days Delinquent
Average number of days that payments are overdue, indicating how long invoices remain unpaid after their due date has passed.
Reporting Level
Mid-Level Management
Target Result
<30, <60, <90
Tr
Average AR Turnover Ratio
How many times a company converts its receivables into cash over a given period. This broad metric reflects how well credit policies are working.
Reporting Level
Mid-Level Management
Target Result
>6
Rc
Receivables Collected
The total amount of overdue invoices collected, excluding those that are not yet due. Assesses how effectively overdue AR is converted into cash.
Reporting Level
Mid-Level Management
Target Result
85%+
Adr
Average Daily Receivables
The amount of money a company has tied up in accounts receivable on an average day over a given period.
Reporting Level
AR Operations
Target Result
<15–20% of monthly revenue
How to elevate your outcomes
Define goals for AR
Target metrics offer tangible examples of what success looks like, allowing the AR team to align their efforts and drive the greatest impact.
Evolve as you automate
Traditional metrics fall short in measuring automation. Advanced metrics like Match Rates and Touchless Payments achieve next-gen success tracking.
Metrics at every level
Explore KPIs by role to understand how AR performance is measured from the practitioner level to the CFO and everywhere in between.
The 20 Best KPIs for Accounts Receivable
A Strategic Guide by Functional Area
“In the beginning, our payment processing was around 75% touchless and it’s up to 98% touchless now. Collectors are making calls — not just processing payments.”
Christian Collins, Commercial Credit and AR Manager
McPherson Oil
“At one time, we were taking on $30-35 million in credit card processing fees. Those have been reduced in half with Billtrust.”
Brian Page, Director of Credit
84 Lumber
“We went from 100% manual process to 96% automation. Billtrust was an astronomical change to our environment.”
Becki Hamilton, Sr. Manager Cash Applications
Willscot
Unlock the formula for cash flow health
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