Accounts Payable Metrics for Restaurants
To gauge the efficiency of AP processes, restaurants should track the following key metrics:
- Days Payable Outstanding (DPO): Measures the average time taken to pay invoices.
- Invoice Processing Time: Tracks how long it takes to process and approve invoices.
- Payment Accuracy Rate: Monitors the percentage of payments made without errors.
- Discount Capture Rate: Evaluates how often early payment discounts are utilized.
Benefits of Efficient Accounts Payable Management
- Streamlined Operations: Ensures uninterrupted supply chains.
- Cost Savings: Avoids late fees and capitalizes on early payment discounts.
- Improved Cash Flow: Balances outgoing payments with incoming revenue.
- Enhanced Vendor Relations: Builds trust and credibility with suppliers.