Digital transformation is key for companies that want to be profitable and survive over time. In previous posts, we have mentioned how to manage business changes, and the importance of measuring with the right KPIs the success of any digitization project.
At Brait, we have implemented many projects for the digitization of accounts payable processes, so we know well how to measure their success. Here are some of the most important KPIs you should be looking at.
KPIs to measure Accounts Payable performance
Every company is different, and as such, every accounts payable department must set its own KPIs, depending on the established objectives.
However, there are a number of aspects and processes common to all accounts payable departments, so we can establish KPIs such as:
- Payment approval process: indicate how longi t takes to approve a payment since the invoice is entered, registered and processed. We should also take into account how log it takes to return it to the supplier, in case, for example, there is an error on the invoice.
- Number of invoices posted: similar to the previous point, but instead of times, quantity should be measured: it is about identifying how many invoices are posted per month compared to the invoices posted after the process digitization.
- Discounts for prompt payment: identify the amount of money saved thanks to the discounts obtained for prompt payment to suppliers. We can compare this figure with the previous savings, if there were any.
- Payments on time: number of payments made on the agreed dates, compared to those made now.
These KPIs will help you measure all the benefits that products such as Vendor Invoice Management by OpenText can help you achieve. However, there are many other benefits to optimizing the accounts payable process. If you have any question, contact us, we will be delighted to help you!