6 Attributes of a Best-in-Class Accounts Payable Operation
How can an accounts payable department be sure that it is getting the most from its automation initiatives? The latest white paper from the AP & P2P Network explains the six attributes of best-in-class accounts payable departments, and shows how electronic invoicing contributes to each one. This six attributes differentiate best-in-class accounts payable operations – which typically have the highest levels of automation – from their peers.
Most Accounts Payable departments are still struggling with manual invoice processing. The root cause is that businesses receive most of their invoices in paper, e-mail, PDF, or fax format which is no better than paper. Some have an automated solution in place to automatically identify and extract data and convert it to a digital format, but that’s not the ideal most scenario either!
So what are the traits of a truly best-in-class AP organization? Accounts payable departments can be sure they are getting the most from their automation investments by measuring themselves against their peers in six critical areas: 1) invoice approval cycle times, 2) invoice processing costs, 3) staff productivity, 4) the number of supplier inquiries they receive, 5) the percentage of invoices posted straight-through, and 6) the percentage of discounts captured.
A Few Stats from this Whitepaper:
- 17.6 percent of controllers reported that the inability to effectively maximize early-payment discounts from suppliers (According to IOFM)
- 70 Percent of CFOs want to capture more early-payment discounts (According to PayStream Advisors)
- 17 percent of payables departments say invoice data entry is their top challenge (According to IOFM)
- 42 percent of businesses plan to deploy dynamic discounting within the next two years (A study by Ardent Partners)
Download this whitepaper if process improvement is your accounts payable department’s key agenda.
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