The 7 Essential KPIs of Accounts Payable

Today, everything seems to be going electronic. Everyone is performing activities virtually — which in most cases is meant to make our lives easier. However, Accounts Payable (AP) seems to be stuck in neutral. A recent study found that paper-based invoices still make up 90% of total invoice volume for a majority of AP departments.

You Want to Improve Your Accounts Payable Processes — But How?

While your AP department stresses with paper shuffling and the management of all of those hard copies of invoices, it can be hard to find the time to sit down and assess where the true issues are. What are your biggest obstacles? What area creates the worst detriment to your department? The truth is, in order to make improvements your analysis has to start somewhere.

The 7 Key KPIs of Accounts Payable

Thankfully, here is your headstart. This SlideShare will give you the 7 essential key performance indicators (KPIs) that will allow you to identify your troubling AP habits and trends, so that you can evaluate how your processes stack up to industry benchmarks. Start your number crunching with these KPIs and begin your quest to AP excellence.

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The 7 Essential 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.

  1. Measure the number of invoices processed per employee (or per month). This metric can change impressively after applying better processing methods.
  2. Measure the processing cost of each invoice. Start to add up such costs for just one invoice, and you have yourself one expensive AP process. What metrics should you be aiming for? Check out this video from Taulia on the average cost per invoice to set your benchmarks.
  3. Measure the timeliness of your payments.
  4. Measure your captured discounts.…If you have any.
  5. Level of automation already implemented… sorry, email doesn’t count as automation…
  6. Document the number of duplicated invoices detected…or “quad-uplicated” invoices…
  7. Measure the percentage of duplicated invoices captured.

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