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7 THE KEY KPIs OF ACCOUNTS PAYABLE
7THE
KEY KPIs OF ACCOUNTS PAYABLE
Identify your troubling AP habits and trends …so that you can evaluate how your
processes stack up to industry benchmarks down the road.
Measure the
NUMBER OF INVOICES
PROCESSED per employee
(or per month).
1
PROCESSED NOT PROCESSED
INVOICES PROCESSED PER EMPLOYEE
Click here for the full guidebook.
This metric can
CHANGE IMPRESSIVELY
after applying better processing
methods.
PROCESSED NOT PROCESSED
INVOICES PROCESSED PER EMPLOYEE 1
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Measure the
PROCESSING COST
of each invoice.
COST TO PROCESSINVOICES2
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$3.00
$4.25
$2.50
$3.75
$6.75
2+ Page Invoices
Faxed Invoices
Emailed Invoices
Mailed Invoices
3 Level Approval Workflow
Start to add up these costs for just one invoice,
and you have yourself
ONE EXPENSIVE AP
PROCESS.
2 COST TO PROCESSINVOICES
$3.00
$4.25
$2.50
$3.75
$6.75
2+ Page Invoices
Faxed Invoices
Emailed Invoices
Mailed Invoices
3 Level Approval Workflow
Click here for the full guidebook.
WHAT METRICS SHOULDYOU BE AIMING FOR?
TauliaTV: The 2014 ArdentePayables Report
Check out this video from Taulia on the average cost per invoice to set your benchmarks.
DON’T FORGET TO COME BACK
AND REVIEW THE OTHER 5
KPIS!
Measure the
TIMELINESS of your payments.
3
Click here for the full guidebook.
PAYMENT TIMELINESS
3 DAYS
5 DAYS
2 WEEKS
3 WEEKS
INVOICE110020
INVOICE120039
INVOICE112321
INVOICE390090
INVOICE289981
INVOICE664501 INVOICE LOST — LATE PAYMENT ACCRUING
Hopefully you won’t have too many
situations like
INVOICE #664501 over there ...
3PAYMENT TIMELINESS
3 DAYS
5 DAYS
2 WEEKS
3 WEEKS
INVOICE110020
INVOICE120039
INVOICE112321
INVOICE390090
INVOICE289981
INVOICE664501 INVOICE LOST — LATE PAYMENT ACCRUING
Click here for the full guidebook.
Measure your
CAPTURED DISCOUNTS.
4
$250 SAVINGSThank you for your early payment!
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Measure your
CAPTURED DISCOUNTS.
... if you have any.
$250 SAVINGSThank you for your early payment!
4
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Look at theLevel of Automation
ALREADY IMPLEMENTED.
5
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Yesterday, I sentKaren an invoice for approval via email ...
instead of walking it to her desk.
Yesterday, I sentKaren an invoice for approval via email ...
instead of walking it to her desk.
Look at theLevel of Automation
ALREADY IMPLEMENTED.
… sorry, email doesn’t count as automation …
5
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Measure thepercentage of
DUPLICATEINVOICES
PAID.
1
2
6 DUPLICATE PAYMENTS
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Because
ONE PAYMENT
is enough.
6DUPLICATE INVOICES
PAID
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7
Click here for the full guidebook.
Measure the percentage of ERRONEOUSPAYMENTS.
GET THE FACTSThere are 12 defined steps for kicking your paper
and manual methods in accounts payable.
If only there was something to guide you through them ...
