![]() ![]() You can avoid late fees, maintain good relationships with suppliers and reduce reputational risk. Paying your invoices on time makes good business sense. If your cycle time is high, it could mean you have processes that need optimizing or bottlenecks in your workflow. It can tell you whether your processes are fast or flagging. This is the average time it takes from receipt of an invoice to payment. Research shows a $10 discrepancy in cost-per-invoice between the best performers and the rest of the field. This is helpful because it shows you what costs contribute to team overheads and provides a benchmark for monitoring them. Working out your AP costs and dividing them by the number of invoices you process gives you your cost-per-invoice. Track invoice numbers in a set period – monthly or quarterly – and you’ll be able to work out other metrics such as discounts achieved, manual interventions required and the average cost per invoice.Įvery business process has a cost – from staff time to software subscriptions. You can’t track AP performance without knowing how many invoices you receive. Sound good? Here are 10 Accounts Payable metrics that your business needs to track. ![]() This leads to quicker processing, lower costs, fewer errors and less loss to fraud. By benchmarking against other organisations and identifying inefficiencies, you can start to streamline your AP processes. Especially as an IOFM report found the median number of invoices processed by AP teams climbed 28% year-over-yearwhile headcount dropped 12%.īut effective AP performance measurement can have a direct impact on your business’s bottom line. With an avalanche of invoices to pay, measuring Accounts Payable performance might be a low priority for your finance team. ![]()
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