The One AP Metric You Should NEVER Use – Even though your boss probably loves it! Never use the accounts payable metric cost to process an invoice. If #benchmarking using this #accountspayable (#accounting) metric, you are apt to make some very poor decisions.

That is we recommend that you Never Use this Accounts Payable Metric: cost to process an invoice. Yet that is what happens in many accounts payable benchmarking endeavors. For some reason, competitive benchmarking is what many organizations strive for. They think it is one of many accounts payable best practices. But a competitive benchmarking process makes a lot of assumptions, many of which are faulty and discussed in this recording.

The benchmarking process when it involves invoice processing metrics should be one that makes sense for the organization involved. When looking at accounts payable metrics it is important to do this in the proper context. Accurate accounts payable benchmarking metrics are next to impossible to find, especially when looking for cost to process an invoice. The reasons for this are discussed in this recording.

To properly benchmark accounts payable, it is probably best to benchmark against your own processes. This would be a payables best practices.

When doing competitive benchmarking Never Use this Accounts Payable Metric, the cost to process an invoice. Accounts payable benchmarking is more nuanced. When handled properly benchmarking is a good part of accounts payable best practices.

Link to What You Need to Know to Work in AP https://youtu.be/UGFaUkiNPP0

Learn more about AP Now at www.ap-now.com

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