10 Reasons To Use An AP Dashboard

What is an AP Dashboard?

An Accounts Payable Dashboard is an interactive visual report of your accounts payable transactions. It is designed to measure and monitor the performance of accounts payable processes within an organization. It allows the AP manager or CFO at a glance to see the status of AP transactions in a given period. Its goal is to give the management the necessary information to effectively manage an AP department.

What Are The Key Components of A Good AP Dashboard?

The key components of an accounts payable dashboard typically include:

Workload Information: Details on the workload of the Accounts Payable (A/P) department, such as the number of invoices processed, vendors paid, and payment methods used (e.g., check vs. ACH).

Analysis Features: Tools for easy review of top paid vendors, totals, and comparisons to provide insights into the volume of work processed by the A/P department Column Headers: Options to select and display specific columns like Vendor #, Vendor Name, AP Description, Invoice #, and ACH # Displayed Information: Information displayed typically includes branch details, payment dates, check numbers or ACH trace numbers, amounts, GL accounts, and labels for credit transactions Buttons for Functionality:

Clear Filters: Allows quick clearing of all selection criteria. Export: This enables exporting the complete dashboard to a file. Analysis: Provides access to a screen for viewing top performers across the AP vendor portfolio. Data Sources: Allows viewing the tables and fields used to compile the dashboard Financial Information:

Debts and Obligations: Registers financial information about a company's debts and obligations to suppliers.

Payment Verification: Verifies payments with timeliness and accuracy. Audit and Control: Ensures payment audit and control within the accounts payable process

Key Performance Indicators (KPIs): Metrics that offer insights into financial duties through ratios, percentages, numbers, and specialized metrics related to accounts payable processes. Here are some sample metrics:

• Total purchases
• Total AP for the period
• Overdue payable amount
• % Overdue
• Days payables outstanding
• Top 5 vendors by purchase
• Top 5 vendors by amount due.
• Payable aging visual
• Overdue payable aging visual
• 12-month AP amount visual

Top 10 Reasons you need an AP dashboard.

The top 10 reasons why an Accounts Payable (AP) department needs a dashboard are:

1. Real-Time Visibility: Dashboards provide real-time insights into key performance indicators (KPIs) like total accounts payable, outstanding payables, due dates, and AP employee workload reports.
2. Efficient Cash Flow Management: AP dashboards help manage cash flow effectively by forecasting working capital and prioritizing bill payments.
3. Cost Control: By monitoring invoice processing efficiency and spending by department, dashboards assist in controlling costs within the accounts payable process.
4. Data-Backed Decision Making: Dashboards enable finance leaders to make informed business decisions based on detailed, actionable metrics displayed in real time.
5. Transparency and Visibility: AP dashboards track transaction details, invoice processing metrics, and KPIs like invoice aging, vendor information, error rates, and approval times to ensure transparency in the AP process. It also shows the performance of each staff member.
6. Process Streamlining: Dashboards streamline processes by providing insights that help in reducing employee workloads through automation and optimizing procurement processes.?
7. Enhanced Financial Performance: By empowering organizations to make data-driven decisions, AP dashboards contribute to increased profitability and operational efficiency.
8. Identifying Bottlenecks: Dashboards help in spotting bottlenecks within the accounts payable processes, allowing for timely interventions to improve efficiency.
9. Improved Supplier Relationships: Efficient AP departments can pay vendors on time or early, maintaining strong relationships critical for supply chain management.
10. Audit Preparation: AP dashboards assist in keeping track of important information for audits, ensuring compliance and transparency within the department.

In summary, AP dashboards play a crucial role in providing real-time visibility, enhancing decision-making processes, controlling costs, and ensuring efficient cash flow management within the Accounts Payable department.

Hemingway Solutions AP Automation

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