Organizations Invited To Participate In No-Cost Accounts Receivable Benchmarking From APQC
APQC finds top performers resolve invoice disputes 26 days faster than bottom performers; benchmarking insights help improve processes, boost productivity
(Houston, TX - October 28, 2009) - At a time when companies are looking to maximize profits, CFOs are once again looking to improve results and accuracy within the finance organization. To get useful answers, many CFOs and Controllers start with financial process benchmarking-the point is to learn if areas such as routine Accounts Receivable (A/R) transaction work is as efficient as it could be. Using open, standard definitions and benchmarking processes, the American Productivity & Quality Center (APQC), a nonprofit benchmarking and best practices firm, helps organizations to quickly, accurately, and consistently determine their own accounts receivable performance without complexity or expense. APQC's Open Standards research can be completed online and at no cost by visting: www.apqc.org/fm/ar.
One compelling example involves resolution of disputed invoices. In the majority of cases, a customer will withhold payment not because the customer does not want to pay, but because the invoice is rife with error. In many cases such errors resulted from mis-keyed purchase order numbers, units shipped, addresses, names or terms that stem from upstream sales and order entry activities. APQC's Open Standards research in Accounts Receivable reveals that top performing organizations successfully navigate this maze of exceptions within four calendar days while bottom performers do the same work in 30 days.
"Getting to cash 26 days faster not only helps speed cash flow, but also boosts the productivity of the Accounts Receivable professionals," noted Mary Driscoll, senior research fellow for finance with APQC. "The benefit of benchmarking is to identify sub-optimal performance and gaps so that you can build a business case for improvement, be it investing in process redesign or introducing automation. For A/R, the point is to reduce the amount of errors in the invoicing and cash collection process."
Additional measures in APQC's research include: percentage of invoiced line items adjusted by the customer prior to payment; percentage of invoiced line items paid in full the first time; and percentage of total receipts processed error free the first time, among others.
Participants receive a complimentary report showing their performance compared to other companies in their industry. The report showcases key success factors used by top performers, enabling participants to better understand gaps and identify opportunities for improvement.
Learn more at www.apqc.org/fm/ar.
APQC is the leading resource for performance analytics, best practices, process improvement, and knowledge management. The organization's research studies, benchmarking databases, and renowned Knowledge Base provide managers with intelligence to transform their organizations. A member-based nonprofit founded in 1977, APQC serves over 750 of the Fortune Global 1000 companies and numerous government organizations. For information, visit www.apqc.org or call +1.713.681.4020.
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