Tracking key metrics can help improve invoice processing efficiency

NEW YORK, USA: A survey report by Canon Business Process Services, Inc. reveals operating performance metrics that accounts payable (AP) departments should consider tracking in order to establish a baseline and improve overall performance.

Report findings suggest that monitoring such AP metrics as invoice cycle time (receipt to ready-to-pay), exception rate and cost-per-invoice can drive efficiency improvements and lower the cost of processing invoices from receipt to payment.

Canon's report, spotlights operational metrics that characterize high-performance AP departments and how three activities-centralizing invoice receipt, implementing process automation and leveraging outsourced services-can positively affect these metrics.

"Our report data discloses that there are major differences between high-performance and average AP departments in such metrics as invoice processing cycle time," notes Elizabeth Halaki, chief marketing officer and R&D for Canon Business Process Services.

"Among other measures, best-in-class AP operations process invoices 4.5 times faster than average organizations and have a 52 percent lower exception rate. Other findings comprise important insights that organizations can leverage to raise the performance bar for their AP operations."