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“Flexible product with great training and support. The product has been very useful for quickly creating dashboards and data views. Support and training has always been available to us and quick to respond.
- George R, Information Technology Specialist at Sonepar USA
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What Are Some Key Performance Indicators That Would Be Tracked in Billing and Invoicing Software?
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Days Sales Outstanding (DSO): DSO measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates faster payment collection and better cash flow management.
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Invoice Accuracy Rate: This KPI assesses the percentage of invoices that are error-free and do not require any adjustments or corrections. Higher accuracy rates indicate a well-organized and efficient billing process.
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Invoice Aging: This metric tracks the number of invoices outstanding for different periods (e.g., 30 days, 60 days, 90 days). It helps identify aging accounts and potential cash flow issues.
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Invoice Rejection Rate: This KPI measures the percentage of invoices that are rejected by customers due to errors or discrepancies. A high rejection rate may indicate issues with billing accuracy or clarity.
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Collection Effectiveness Index (CEI): CEI evaluates the effectiveness of a company's collections efforts. It takes into account the amount of money collected compared to the total outstanding receivables.
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Customer Payment Behavior: Analyzing how customers pay (e.g., on time, late, partial payments) helps identify patterns and potential risks, allowing for better credit management.
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Average Invoice Processing Time: This KPI measures the average time taken from the creation of an invoice to its approval and delivery to the customer. Shorter processing times lead to faster revenue recognition.
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Churn Due to Billing Issues: This metric tracks the number of customers lost due to billing-related problems, such as incorrect charges or billing disputes. It highlights areas that need improvement in the billing process.
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Customer Satisfaction with Invoicing: Feedback from customers regarding the clarity, accuracy, and timeliness of invoices can be a valuable KPI to monitor. Satisfied customers are more likely to pay promptly.
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Billing Cycle Efficiency: This measures how quickly a company can close its billing cycle, from the point of sale to the issuance of the invoice. A shorter cycle time indicates a more streamlined billing process.
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Bad Debt Ratio: This KPI calculates the percentage of total outstanding receivables that are unlikely to be collected due to non-payment or default. A lower ratio is indicative of better credit management.
About InetSoft
Since 1996 InetSoft has been delivering easy, agile, and robust business intelligence software that makes it possible for organizations and solution providers of all sizes to deploy or embed full-featured business intelligence solutions. Application highlights include visually-compelling and interactive dashboards that ensure greater end-user adoption plus pixel-perfect report generation, scheduling, and bursting. InetSoft's patent pending Data Block™ technology enables productive reuse of queries and a unique capability for end-user defined data mashup.
This capability combined with efficient information access enabled by InetSoft's visual analysis technologies allows maximum self-service that benefits the average business user, the IT administrator, and the developer. InetSoft was rated #1 in Butler Analytics Business Analytics Yearbook, and InetSoft's BI solutions have been deployed at over 5,000 organizations worldwide, including 25% of Fortune 500 companies, spanning all types of industries.
More Resources About Industry KPIs
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Global Trade KPI: Inventory Turnover and Aging Analysis - Effective inventory control is essential for international commerce. GTM dashboards include statistics and KPIs pertaining to inventory: Inventory Turnover Rate: The speed at which inventory is sold and replenished is gauged by this KPI. Effective inventory management is indicated by high turnover rates...
Hiring KPIs: Time-to-Hire - The time-to-hire is the amount of time needed to select, screen, and recruit a new employee. It begins from the time a candidate applies until they get an offer. This metric assesses the effectiveness of the hiring process, which includes vetting resumes, administering tests, and conducting interviews. It may highlight problems, but it primarily aids in defining and honing the...
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Incident Management KPIs: Incident Priority and Impact - Effective incident management depends on knowing the importance and impact of occurrences. Organizations may prioritize resources and spend them appropriately by classifying events based on their priority levels and effect on company operations. Dashboards for incident management may provide metrics for event impact and priority, allowing...
Marketing KPIs That Are Actionable - Your marketing KPIs should be strategic, meaning they should be actionable, meaning they should give you insights that you can use to improve your marketing campaigns. For example, if you're tracking website traffic as a KPI, you should also be tracking where that traffic is coming from so you can adjust your marketing strategy accordingly...
Software for Tracking Key Performance Measures Key performance measures (KPMs) are business metrics used to track an organization's performance. Any industry, agency, or organization must measure its performance on a daily, monthly, quarterly basis and KPMs are those statistics utilized in tracking in order to meet business goals and objectives. InetSoft is a business...
Steel Industry KPIs - Steel companies can track industry specific KPI's in real time: Monitor CO2 emissions to meet government regulations Track shipments to factory from suppliers and shipments to customers from various shipping companies Track products along various points in production lines...