Billing Error Rate

Benchmarking Report

Billing Error Rate

This PDF report includes benchmarking data (in a visual, chart-based format), a comprehensive KPI definition, characteristics of high performers and technical details on measuring Billing Error Rate. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Billing Error Rate?

The number of bills to customers sent by the Accounts Receivable (AR) Department that contain errors divided by the total number of bills sent to customers over the same period of time, as a percentage.

Why should Billing Error Rate be measured?

Billing Error Rate measures the diligence of the Accounts Receivable (AR)Department in issuing bills to customers. Errors may include bills sent to the wrong address, incorrectly billed amounts, etc. Excessive billing errors may be indicative of a lack of controls within the AR function (e.g., lack of billing standards, outdated customer information, unenforced customer data quality, etc.), and lead to potential customer disputes and/or impact the organization’s ability to meet its short-term financial obligations. Highly manual or paper-based billing processes may also adversely impact the amount of errors produced by AR staff.

Download a Sample Billing Error Rate

Frequently Asked Questions

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A: From real-world consulting engagements with Fortune 500 leaders. We’ve spent 25 years conducting original research and anonymizing data from our engagements with top companies around the world. Every single data point we collect is scrutinized by our analysts to conform to established baselines and our rigorous in-house validation process. We won’t serve it up to you unless it meets our tough standards for utility and value.

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A: Enough to produce a useful benchmark. And rest assured that it’s all current, validated, and useful. We only include data that’s been collected in the last five years. And while sample sizes vary by KPI, the average is 25, and the high end can surpass 1,000.

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