In this episode entitled The Accounts Payable Metric that Stinks, Why and What to Use Instead, AP Now’s Mary Schaeffer eviscerates this popular metric. She begins by explaining why folks spend the time to create metrics and how they are used. Then she reveals the metric she despises, the cost to process an invoice. Schaeffer then exposes the flaws in this metric, given how it is used. She shares two real-life stories that shed the spotlight on just how fragile and unrealistic reported cost to process an invoice metrics are.

She then explains to the audience how they should be using metrics to solve whatever problems they may have, using practical examples.  Once she’s explained her strategy, the audience is then instructed to evaluate current resources before spending time creating the newly identified desired metrics. Only after a complete review is done should new reports be created. She closes with a final reminder to the audience that once the metrics are created when shared with management for the purpose of invoking change, it is imperative that the results be translated into hard dollar costs or savings, the language of management.

Host: Mary Schaeffer (www.ap-now.com)

Sponsor: Stampli (www.stampli.com/APNow)

Credit: Music: https://www.purple-planet.com