One of the key statistics to come out of an APN survey of Accounts Payable in 2015 was that 40% of those working in that department did not check their metrics regularly.
A lack of visibility and control within the AP process was high on the agenda and came in as one of the top three key challenges faced by the industry – a trend which looks to continue into 2016.
The report covered the importance of metrics and reporting – the use of measurement, forecasting and moving over to centralised systems that are able to track and easily identify potential problems, to boost control and visibility.
AP departments are under increasing pressure to produce accurate statistics – the report examined how far these statistics are being translated into a thorough analysis of the output from the accounts payable process – and how often the metrics were being measured.
Lack of monitoring systems
Although 60% of respondents revealed that they looked at metrics on a monthly basis, an overall lack of monitoring systems in place is presenting a number of challenges for the industry – with a small number of respondents reporting that they seldom looked at metrics, or only did so annually.
It is vital that these challenges are addressed in order for businesses to achieve real added value and realise the benefits associated with good reporting, clear visibility of processes and the financials associated with this.
Through having clearer reports, you can better manage your team, identify hold ups/bottlenecks in the accounting process and discover what parts of the process are taking the most time. This vital information enables you to take action, re-address your strategy and make those all important savings – driving down costs where necessary.
Ultimately, better reporting also means that you will work better as a team – your team will be more productive and performance will improve. The secondary impacts are numerous. If a senior manager is asking difficult questions regarding finance or process – these questions can be answered quickly and easily – enabling problems to be resolved quicker.
Naturally, this increase in productivity will contribute to your business growth and profits.
If you are keen to take control of your Accounts Process and gain the advantage of quicker payments via automaton, leading to an optimised department, you can download our free white paper ‘Overcoming Key Challenges in Accounts Payable’