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Accounting KPI

Accounting KPIs in key performance indicators of accounting management


I/ Accounts payable KPI
These KPIs include ones about Accounts payable management.
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Accounts Payable
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Accounts payable KPI
Accounts payable KPIs in key performance indicators of accounting management
1. Average monetary value of invoices outstanding
2. Total sum of monetary value of outstanding invoices.
3. Invoicing processing costs
4. Number of invoices outstanding in measurement period.
5. Percentage of invoices disputed.
6. Average monetary value of overdue invoices.
7. Total monetary value of overdue invoices.
8. Accounts Payable
9. Money owed (payable) to suppliers for goods or services purchased on credit that must be paid
within a year.
10. Number of overdue invoices i.e. invoices that have not been paid before their payment date.
11. Discounts Lost : Cost of passing up discount by paying invoice after discount period.
12. Creditor days: Creditor days is the average time that a company takes to pay its creditors.
13. Average cycle time (e.g. in days) to resolve invoice errors.
14. Percentage of electronic invoices.
15. Percentage of low value invoices
16. Percentage of invoices under query.
17. % of invoices requiring special payment
18. Percentage of payable invoices that have not been matched to a purchase order.
19. % effectiveness in payables management
20. Accounts Payable Turnover
21. This ratio shows how many times in one accounting period the company turns over (repays)
its accounts payable to creditors.
22. Days Payable: This ratio shows how many days it takes to pay accounts payable.

II/ Accounts receivable KPI
These KPIs include ones about Accounts receivable management.
Accounts receivable KPI
Accounts receivable KPI
Types of Accounts receivable KPIs
1. Total monetary value of overdue invoices.
2. Sum of monetary value of unsettled i.e. unpaid invoices.
3. Average monetary value of unsettled i.e. unpaid invoices.
4. Number of overdue invoices i.e. invoices that have not been paid before their payment date.
5. Number of unsettled i.e. unpaid invoices.
6. Debtor days: Debtor days is a measure of the average time payment takes.
7. Percentage of electronic invoices.
8. Percentage of bad debts against invoiced revenue.
9. Accounts Receivable Collection Period: This reveals how many days it takes to collect all
accounts receivable. Fewer days means the company is collecting more quickly on its accounts.
10. Accounts Receivable Turnover: This ratio shows the number of times accounts receivable are
paid and reestablished during the accounting period.
11. Costs of processing invoices.
12. Receivables against Product, Region, Sales office: This KPI is to analyse the outstanding
receivables, and Overdue receivables and Payables for Product wise, Region wise, Sales Office,
Purchase Office.
13. Number of invoices outstanding in measurement period.
14. Average monetary value of invoices outstanding.
15. Total sum of monetary value of outstanding invoices.
16. Average monetary value of overdue invoices.

III/ General Accounting KPIs
1. Operating income: Operating Income equals Gross Profit minus SG&A Expenses. It is the
income from current operations.
2. Gross profit: Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the amount
available to cover other operating expenses.
3. Gross profit margin: Gross Profit Margin equals Gross Profit divided by Revenue, expressed
as a percentage.
4. Cost of goods sold (COGS): Cost of Goods Sold includes all expenses directly associated with
the production of goods or services the company sells (such as material, labor, overhead, and
depreciation). It does not include SG&A.
5. Operating margin: Operating Margin equals Operating Income divided by Revenue, expressed
as a percentage.
6. Goodwill: Goodwill is an accounting term used to reflect the portion of the book value of a
business entity not directly attributable to its assets and liabilities.
7. Total Assets: Total Assets are everything of value that is owned by a company.
8. Accounts Payable: Money owed (payable) to suppliers for goods or services purchased on
credit that must be paid within a year.
9. Long-Term Debt: Long-Term Debt represents the amount of borrowings due more than one
year from the date of the balance sheet.
10. Total Liabilities: Total liabilities represent the sum of all monetary obligations of a business
and all claims creditors have on its assets.
11. Cumulative Annual Growth Rate (CAGR):
12. Cash Flow Return on Investments (CFROI): This is similar to ROI, but the only difference is
CASH is used inplace of Profit.
13. SG&A expenses: Selling, General, and Administrative Expenses include all salaries, indirect
production, marketing, and general corporate expenses.
14. Net profit margin: Net Profit Margin equals the Total Net Income divided by Revenue,
expressed as a percentage.
15. Shares Outstanding: Shares Outstanding is the outstanding number of shares of the class of
common stock that is most actively traded.
16. Total Equity: Total Equity equals Preferred Stock Equity + Common Stock Equity.
17. Total Current Assets: Total Current Assets equals Cash and Equivalents + Receivables
+ Inventories + Other Current Assets.
18. Other Current Assets: Other Current Assets includes prepayments, deferred charges, and
amounts (other than trade accounts) due from parents and subsidiaries.
19. Inventories: Inventories is merchandise bought for resale or supplies and raw materials
purchased for use in revenue producing operations.
20. Net Receivables: Net Receivables are amounts owed to the company, net of any provisions
for bad debts.
21. Cash: Cash consists of cash and may include cash-like items such as short-term investments
that can be quickly converted to cash.
22. Net Change in Cash: Net Change in Cash is the difference between the Cash and Cash
Equivalents at the beginning of the reporting period minus the amount at the end of the
reporting period.
23. Common Stock Equity: Common Stock Equity is the amount of shareholders equity
attributable to common stock.
24. Preferred Stock Equity: Preferred Stock Equity is the amount of shareholders equity
attributable to the preferred stock issued by the parent company.
25. Other Noncurrent Liabilities: The liabilities that are not assigned to Long-Term Debt or
deferred Income Taxes.
26. Short-Term Debt: Short-Term Debt represents the amount of borrowings (principal and
interest) that must be paid in the near future.
27. Other Noncurrent Assets: Assets that are not assigned to Net Fixed Assets or intangibles.
28. Total Current Liabilities: Total Current Liabilities equals Accounts Payable + Short-Term
Debt + Other Current Liabilities.
29. Other Current Liabilities: Other Current Liabilities includes all other liabilities not assigned
to Short-Term Debt or Accounts Payable.
30. Net Fixed Assets: Net Fixed Assets are the assets of a company that are of a relatively
permanent nature and are not intended for resale, such as property, plants, and equipment.