New year, new business goals! In order to ensure growth and sustainability of your business it’s important to keep record of certain metrics in order to measure your success. KPIs (Key performance indicators), are a great way to hold you and your team accountable to your goals.
When it comes to accounts payable (AP), KPIs will give you insight into how your team is performing. Here are some great areas where we recommend setting KPIs:
A great way to determine the overall effectiveness of your AP process is to understand how many people are involved. If you are still using a manual or hybrid process, it is likely that the number of touchpoints per invoice is higher than it needs to be.
Eliminate wasted time and human capital on steps such as data entry, printing, filing, stamping, scanning etc. by switching to an automated solution. The less touchpoints, the faster and more effective your team is running. An efficient team is a cost effective team!
Consider the time, labor, and (in some cases) postage costs that go into each invoice. Some studies have shown a $15 per invoice cost on average! You can save on costs in the new year by implementing an automated solution.
We also recommend considering your preferred methods of payment . Cutting all those checks could be costly for your business and driving up your per invoice cost. Consider alternate methods such as ACH/EFT, auto pay, or perhaps turn your AP department into a profit center by taking advantage of Virtual Credit Card (VCC) rebates!
Think about how long it takes to process an invoice, from the time it is received to the time the payment hits your bank account. Is your team being fast and effective?
Within the property management industry, it is common to see invoice processing times in the 20-45 day range, due to all the approvals needed. If you’re using a manual system, this also includes the time the physical invoice is spent traveling from your AP team to the property manager for approval!
If you are looking to process and pay faster in 2023, an automated solution can save you a lot of time. CondoWorks saves property management companies 90% of time spent on AP through automation.
Once you determine your KPIs you can begin setting realistic goals for improvements. Think of KPIs as an ongoing “health check” for your business, as they are something that can be tracked on an ongoing basis! Drive towards cost savings and efficiency this year by continually keeping your KPIs at the forefront of strategy planning.
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