The 4 Most Important Benchmarks for Becoming a Best-in-Class Accounts Payable Organization by IOFM

The 4 Most Important Benchmarks for Becoming a Best-in-Class Accounts Payable Organization by IOFM

Measure Your Performance against Best-in-Class Accounts Payable Departments

Accounts payable departments today must strive towards best-in-class status or risk being left behind in today’s competitive global business environment. So what sets top-performing AP departments from the rest?

Best-in-class departments measure their performance by a number of benchmarks. A new Corcentric-sponsored, APP2P white paper, “The Four Most Important Benchmarks for Becoming a Best-in-Class Accounts Payable Organization,” details these benchmarks and describes how your AP can move to the next level by automating processes:

  1. Percentage of invoices processed straight-through – 71 percent of best-in-class AP organizations can process invoices without human intervention. According to Ardent Partners, the cost to process an invoice is $3.34 vs.$16.67 for those falling behind
  2. Invoice approval cycle times – Best-in-class performers have much shorter approval times than their peers, 3.6 days vs. 16.6 days per Ardent Partners.
  3. Alignment between AP and procurement – Best-in-class performers eliminated the silos separating these two functions. Yet, IOFM research finds that only 35 percent of businesses report that their AP and procurement functions regularly collaborate.
  4. Percentage of early-payment discounts captured – Top performers capture 80 percent of these discounts but most companies capture less than 21 percent of all early-payment discount offers.

Download the white paper to discover how automating your AP processes will help you reach these benchmarks by reducing costs, increasing efficiency and providing full visibility.