AP ANALYTICS

AP automation is highly beneficial, with businesses using AI-powered automation reporting an 80% reduction in time spent on invoice uploads and coding. Automation transforms accounts payable from a labour-intensive and error-prone function into a streamlined and efficient process, translating into huge cost savings and ROI.

The best way to monitor your accounts payable data is through a comprehensive dashboard that covers key metrics such as outstanding invoices, aging balance, and AP efficiency statistics. This allows you to see everything in one place in real time, ensuring efficient and accurate financial management. Additionally, a well-structured dashboard can help identify potential issues early, enabling timely corrective actions.

There are many key performance indicators (KPIs) for Accounts Payable you can track to monitor the efficiency and optimisation of your procure-to-pay processes, including:

1. Aging Balance Report: This KPI tracks the amount of outstanding payables and categorises them by age, helping you manage overdue invoices effectively.

2.Average Payment Time: This measures the average time taken to pay suppliers, indicating the efficiency of your payment processes.

3. Days Payable Outstanding (DPO): This is the average number of days it takes the company to pay back its accounts payable, and indicates how well a business is managing its cash flow.

4. Approvals Efficiency: This can be tracked with various metrics, such as the average approval time, to ensure invoices are processed and approved promptly.

An Accounts Payable (AP) dashboard provides real-time visibility into key metrics such as outstanding invoices, supplier performance, and cash flow. With an AP dashboard, businesses can quickly identify bottlenecks in payment processing, monitor days payable outstanding (DPO), and ensure timely payments to avoid late fees. Additionally, having a centralised view of AP data helps improve financial planning, reduce errors, and enhance decision-making by providing detailed insights into payment cycles and supplier relationships.

While many AP automation software solutions offer AP dashboards, these dashboards are often limited in the depth of data they provide and their overall usability. Standard dashboards may give basic insights into payment statuses and outstanding invoices but can lack the functionality and actionability needed for comprehensive decision-making.

Kloo’s AI-powered automation solution goes beyond these limitations by using Generative AI (GenAI) to create detailed yet easily digestible reports. Kloo’s dashboards provide in-depth analytics that are not only informative but also actionable, empowering businesses to streamline their accounts payable processes with greater efficiency and insight.

To keep track of invoices to pay, use a comprehensive dashboard that shows the number of outstanding invoices, tracks the time to pay, and ensures payments are within terms. This provides real-time visibility and helps maintain efficient and timely payment processes.

Aged balance refers to the metric metric that categorises outstanding invoices by the length of time they have been unpaid. An aged balance report helps businesses identify overdue payments and manage their accounts payable more effectively.

Days payable outstanding (DPO) is calculated by dividing your total accounts payable by the cost of goods sold (COGS) over a specific period, then multiplying the result by the number of days in that period. The formula is:

DPO = (Accounts Payable / COGS) x Number of Days

This metric helps businesses understand how long they take to pay their suppliers on average. A higher DPO means the company is holding onto cash longer, while a lower DPO may indicate prompt payment to suppliers.