Establishing strategic KPIs for accounts payable
AP KPIs to prove you’re strategic
It’s one thing for teams to say they’re becoming more strategic; it’s another thing to prove it. Yes, you may know you’re doing a good job, but if you’re not telling the rest of the business, then you’ll never get the recognition you deserve. This is why it’s vital that you track and communicate your effectiveness and the value you’re creating.
KPIs: communicating your effectiveness
Key performance indicators (KPIs) shouldn’t be a new concept to anybody. All teams will track their performance in some shape or form. For example, all accounts payable teams will track cost per invoice processed, average time per invoice processed, the number of invoices processed per day, and percent of invoice exceptions.
But while teams may do a good job of tracking their performance, they’re not doing a good job showing how their function is supporting the business in ways that matter.
Now there’s no one size fits all set of ap metrics that teams should use. KPIs will vary depending on many factors. But there are some surefire steps you can follow to build out your metrics.