In the realm of Accounts Payable (AP), performance is not just about doing more work; it's about working smarter. These improvements are measured by key performance indicators (KPIs), which not only showcase your team's effectiveness but also pinpoint areas ripe for enhancement. If you're aiming to elevate your AP efficiency, understanding and optimizing these KPIs is crucial. This is where Fidesic steps in, adding a layer of automation to transform your AP processes seamlessly.
In this blog, we'll dissect two crucial invoice-related KPIs and demonstrate how companies leveraging Fidesic have seen tangible improvements. These include:
Join us as we explore how enhancing these metrics can not only streamline your AP department but also contribute significantly to your bottom line.
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We know that the numbers you are measured against are the most important numbers to pay attention to, and we're here to show exactly how Fidesic can improve those critical KPIs.
At the end of the day, one of the simplest yet most crucial KPIs for AP is the number of invoices that a single AP clerk can process. This metric is a major contributor to processing costs and a significant bottleneck for growth. Fortunately, the variance in industry averages—depending on the level of automation—means there’s ample opportunity for improvement. Implementing automation can dramatically increase these numbers, and adding Fidesic offers a robust solution.
Companies lacking automation face the steepest challenges. Typically, an AP clerk in such environments manages to process only 500-800 invoices per month. This involves full-time effort solely on entry tasks, excluding additional responsibilities like routing and payment, which also benefit greatly from automation.
With Fidesic, the average AP clerk can handle over double that amount, processing nearly 2,000 invoices per month. This figure primarily includes manually intensive invoices—those not submitted digitally or matched with a purchase order. Thanks to Fidesic’s MagiCapture technology, even standard service invoices are automatically captured and routed directly to the appropriate approver, significantly reducing the need for manual clerk intervention.
For general sources of data you can check out the sources directly from IQ BackOffice, Skynova, and CoreIntegrator.
In the realm of Accounts Payable, the invoice exception rate is a critical metric for assessing efficiency. Industry averages indicate that companies with minimal automation often face exception rates as high as 15% to 20%, primarily due to manual errors and discrepancies during invoice processing. As companies adopt moderate automation technologies, these rates can drop to about 10% to 15%. However, those leveraging advanced automation, especially in service industries, see exception rates dip even lower, typically below 10% according to insights from AP automation providers and industry analysts.
Fidesic stands out starkly in this landscape. Our system boasts a remarkable "zero touch" rate, where 96% of invoices require no manual modifications from capture to approval. This indicates an exceptionally streamlined process, far surpassing the typical industry performance. In practical terms, this high zero touch rate significantly reduces the workload on AP staff and minimizes the potential for human error, leading to more consistent and reliable AP operations.
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Furthermore, the post-approval modification rate in our system is much lower than industry standards, underscoring the precision of Fidesic's initial processing. This not only reflects the robustness of our capture and approval mechanisms but also ensures that nearly all invoices are processed correctly the first time. The rarity of needing post-approval corrections further highlights the effectiveness of our automation solution, making Fidesic a leader in optimizing invoice management for heightened accuracy and efficiency.
Contact us Today for a demo and see the difference firsthand.