Ultimately, there are key performance indicators that you have to monitor closely to ensure the success of your business. This does not mean that there are factors that are less important to a business, this just means that there are KPIs that directly affect how a business performs financially and bear more burden to everything else in the process.
Through the use of an accounts payable software, you are able to monitor these KPIs efficiently. This lets you measure how everything flows in your business to help you prepare for the next quarters. Planning and adjusting to failures are two important things that executives have to learn. However, they are impossible to do effectively with no accurate KPIs to act as references.
- Invoices
Invoices are the be-all and end-all for most industries. You are constantly going to look at the peaks and valleys of the invoices. It’s paramount to monitor the number of invoices and the amount stated in those invoices. When you are striving for the company to grow, you need a way to increase these invoices.
Invoices are usually divided by two: electronic and paper. With more a modernized accounts payable software, you are getting access to an accurate system to process and capture all your invoices. As a primary goal, increasing the amount of electronic invoices is something that many finance leaders strive for.
- Consistency
Consistency is a major key when it comes to the growth and maintenance of a business. When there is no consistency, everything falls into disarray. Of course, complete consistency is hard to achieve due to a litany of factors such as changes in staff and rolling out a new software, but striving to maintain the line to where it benefits the company the most is critical.
- Errors
The amount of errors a department makes in a company is important to track. Many companies observe a great reduction of errors by modernizing such as by getting an accounts payable software. Through cloud-based and AI solutions, a company can use their workforce to things that require creativity and manual interaction.
Tracking the amount of errors that departments make can help save a business a lot of money. Questions to ask when planning to solve errors include:
How many errors are made per transaction?
What’s the primary cause of these errors?
What’s a plausible reason for particular human errors?
What was done to placate those affected by the errors?
How can these errors be prevented automatically?
- Execution
The execution of tasks within a business should be seamless. There should be little to no downtime. Although the down times don’t seem like much when looked at individually, adding up the total amount of downtime shows how much time is wasted on a particular task that could’ve been used on other productive things.
To ensure that the execution of a business is seamless, there should be communication channels available and all departments should be interconnected. These speed up approvals and payments.
An accounts payable software can help you achieve your business goals. Contact Nexus Systems today and let’s discuss solutions to common woes in your AP department.
