Professional Services Payment Practices Show Modest Improvement: Average Score Rises to 72.8 in 2023

The Comparison

• 2022: 159 professional services companies assessed demonstrated an average payment practices score of 70.0 out of 100.
• 2023: 162 companies were assessed, exhibiting a slightly improved average payment practices score of 72.8 out of 100.

What This Means

While the increase of 2.8 points is positive, it represents only a marginal improvement in payment practices across the professional services sector; there are still far too many instances of firms dealing with late payments, a situation for which business owners might use a late payment calculator. The slight uptick suggests gradual progress, but the sector continues to grapple with efficiency issues, potentially leading to cash flow pressures for smaller businesses within the sample group.

One-line summary: In 2023, professional services firms averaged a payment practices score of 72.8, a small increase compared to 70.0 in 2022, according to data from 162 and 159 companies, respectively.