With the use of efficient accounts payable systems, you’ll be able to know the different metrics that you have to keep in mind the next time you have a business meeting.
1. Average Time It Takes to Pay
No matter what you mainly use your accounts payable systems for, you’re going to have to make sure that the average time that you take to pay an invoice and the average time it takes for an invoice that you issued is pay are both identified. This will help you in a variety of ways including the management of the budget and how you sort through your assets.
2. All-inclusive Cost Per Processed Invoice
How much it costs to process every invoice is an important metric that you have to keep an eye on. You need to make sure that these costs aren’t too bloated which could weigh down a company financially. You also have to make sure that you have enough budget allocated to guarantee the seamless processing of all invoices.
3. Total Invoices Every X
Depending on the nature of your business or what industry you’re in, it’s important that you know how many invoices are processed every x. The x can stand for a number of things which include day, month, and year. If you use an intuitive software as a part of your accounts payable systems, you will be able to sort these data accurately.
4. Total Percentage of Wrong Payments
Human error is something that companies have come to expend every now and then. However, you should ensure that you have a standard that you meet. If you see that the percentage of wrong payments are increasing, maybe it’s time to make adjustments to ensure the efficiency of your workflow. Do you need more staff? Do you have to optimize your system?
5. Penalties Due to Late Payments
An important metric that many people daunt to have on their lap: late payments. It’s important that you know how to be the bearer of bad news if you must. When you have late payments on your reports, you’re able to make the necessary adjustments needed to prevent it from happening again. You can also inform the key people and even vendors as to why it happened.
6. Full ROI Report
Before sending out a report, you should be the first one to know what’s inside. Having a headstart on data can help you formulate any explanations needed as to why a certain record appears on the report. Having a summary that you can include as a part of the report is also beneficial not only to you, but to the people that you’re presenting to.
7. Savings and Prediction
A company that wants to stay in business needs to have a strategy as to what the next move will be. Aimlessly moving in different directions or following a trend that you’re not sure will even be sustainable should not be done. Being a business leader means knowing what business moves to make on certain times and you can make this decision with the help of savings reports.
Trying to convince decision makers to get better accounts payable systems? Let us our team at Nexus Systems tell you what metrics matter and how our AP software can deliver.