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1 KPI ENCYCLOPEDIA A Comprehensive Collection of KPI Definitions for FINANCE

2 Table of Contents KPI Encyclopedia OpsDog Services Overview...2 Metric Definitions....3 Accounts Payable (AP)....6 Accounts Receivable (AR)....9 Budgeting & Forecasting Controller Group (Accounting & Reporting) Expense Management...19 Internal Audit & Compliance...21 Payroll Tax...25 Treasury This content may not be copied, distributed, republished, uploaded, posted or transmitted in any way without the prior written consent of OpsDog, Inc. 1

3 OpsDog Services Overview OpsDog Offers High-quality Analytical Support without the Price & Risk of Traditional Consulting BENCHMARKING REPORTS & DATA Our benchmark reports and data sets can help you compare any business to the competition and stop operating in the dark. We deliver customized, presentation-quality benchmarking reports and/or data sets based on your precise needs. YOU ARE HERE $300 DIGITIZATION & MAPPING SUPPORT Let us launch your business into the digital future with our process documentation and digitization support services. We map your current workflow, documenting work activities, how systems are used and how data flows. This is the raw material for your digitization blueprint. $2,500 ON-DEMAND DATA ANALYSIS Our off-site data experts can quickly analyze your data to reveal trends and uncover insights. No matter the industry, we can highlight trends in your data through simple graphs and charts and compile all of our findings in a presentation-ready PDF document for you. $1,500 MANAGEMENT DASHBOARDS & METRICS We provide metric definitions and easy-to-update management dashboards to help you track the right metrics. Our analysts will establish and document metric definitions, then create a management dashboard template telling you everything you need to know to manage your business. METRICS $500 Contact Us to Learn More About Our Analytical Services

4 Accounts Payable (AP) Accounts Receivable (AR) Budgeting & Forecasting Controller Group Expense Management Internal Audit & Compliance Payroll Tax Treasury A Department manages a firm s longterm and day-to-day monetary operations and strategy. Its size varies based upon total employee head count, total revenue, industry and overall business strategy. 3

5 = Benchmarks and/or Target Data Available Upon Request Cost Cost (Cont.) Total Expense per Employee The total expense incurred by the company over a defined period of time divided by the total number of Department employees. SG&A as a Percentage of Sales The total sales, general and administrative-related expenses divided by total sales generated over the same period of time, as a Expense as a Percentage of Total Expense Total finance-related expense incurred by the company divided by the total operating expense of the company over the same time period, as a Total Operating Expense as a Percentage of Sales Total operating expense for the company divided by the total dollar amount of sales generated over the same period of time. Expense as a Percentage of Total Revenue Total expense incurred by the Department divided by the total revenue earned by the company over the same time period, as a Expense per Employee The total expense incurred by the Department over a certain period of time divided by the total number of company-wide employees. Occupancy Expense as a Percentage of Expense Total occupancy-related expense incurred by the Department divided by the total expense over the same time period, as a Total Expense: The total expense incurred by the Department for a given time period Total Expense: Outsourcing The total expense incurred by outsourcing Department activities over a given period of time. Share Buyback as a Percentage of Net Income The total dollar amount of shares repurchased by the company divided by the net income generated by the company over the same period of time, as a Cost of Goods Sold (COGS) The total cost of goods sold to customers over a certain period of time. COGS typically includes production/manufacturing costs, and the cost of carrying the inventory before it is sold. Cost of Goods Sold (COGS) as a Percentage of Sales The total cost of goods sold (COGS) to customers divided by total sales over a certain period of time. Cost of Capital The total cost of capital (financing through equity, debt, or both) incurred by the company over a certain period of time. Average Dividend Payout Ratio The total dollar amount of dividends paid out divided by the total net income generated by the company over the same period of time, as a Headcount Headcount Ratio The number of companywide, full-time equivalent employees (FTEs) divided by the total number of employees. Total Revenue per Employee Total revenue generated by the company divided by the total number of employees. Total Headcount: The total number of Department employees working for the company. Organizational Current Ratio The total dollar value of a company s current assets (assets that can be converted to cash) divided by the total dollar value of a company s current liabilities (a company s debts or obligations), as a Debt-to-Worth Ratio The total amount of company liabilities (debt) divided by total shareholder equity (assets minus liabilities), as a Quick Ratio The total dollar amount of a company s current assets minus the total dollar value of the company s product inventory, divided by the company s currently liabilities (debt) over the same period of time, as a Management Levels: The total number of management levels, or layers, in the Department. Span of Control: The average number of employees reporting to each manager. Organizational Structure: A yes/no metric indicating whether the function is carried out in a single location (centralized) or spread across multiple offices/regions (decentralized). Contact Us for Benchmarking Data, Reports, & Other Analytical Services

6 = Benchmarks and/or Target Data Available Upon Request Revenue Internal Return on Investment (ROI) The total gains (dollar amount) generated the company s internal investments divided by the total amount invested over the same period of time, as a Gross Profit Total revenue generated minus the cost of goods sold (COGS) over a certain period of time. Gross Profit as a Percentage of Sales Total revenue generated minus the cost of goods sold (COGS) divided by the total sales generated over a certain period of time, as a Gross Profit Margin Total revenue generated minus the cost of goods sold (COGS) divided by total revenue (sales + interest, royalties, etc.) generated over the same period of time, as a Market Cap The total dollar value of the outstanding shares of a company; can be calculated by multiplying shares outstanding by the current value of a single share. Median Sales The median dollar amount of sales generated by the company over a certain period of time. Net Profit as a Percentage of Sales Total net profit (before taxes) divided by the total sales generated over the same period of time, as a Net Profit Before Taxes Total net profit, before taxes, over a certain period of time. Profit as a Percentage of Sales Total profit generated by the company (before taxes) divided by the total sales generated over the same period of time, as a Operating Margin Total operating income divided by the total net sales generated over the same period of time, as a Net sales accounts for the value of returned goods and warranties Sales Growth The percent change in total sales generated by the company over a certain period of time. Sales to Assets Total sales generated divided by the total dollar amount of assets held by the company over the same period of time. Total Revenue: Total revenue earned by the Department over a given period of time. Contact Us for Benchmarking Data, Reports, & Other Analytical Services

7 Accounts Payable (AP) Accounts Payable (AP) Accounts Receivable (AR) Budgeting & Forecasting Controller Group Expense Management Internal Audit & Compliance Payroll Tax Treasury The AP Group manages and pays all of the company's bills. They are responsible for keeping the lights on and ensuring that all creditors (vendors) are paid in full and on time. 6

8 Accounts Payable (AP) = Benchmarks and/or Target Data Available Upon Request Cost Accounts Payable Expense as a Percentage of Total Revenue Total expense incurred by the Accounts Payable function over a given time period divided by the total revenue generated by the company. Unit Cost: Accounts Payable Transaction Total transaction-related cost incurred by the Accounts Payable Department divided by the total number of Accounts Payable transactions processed over a certain period of time. Unit Cost: Invoice Total invoice processing-related cost incurred by the Accounts Payable Department divided by the total number of Accounts Payable invoices processed over a certain period of time. Total Expense: Accounts Payable The total expenses incurred (includes wages, benefits, occupancy, technology and other overhead costs) by the Accounts Payable Department over a given time period. Unit Cost: Non-PO Invoice The total cost to process non-purchase order (PO) invoices divided by the total number of non-purchase order invoices processed over a certain period of time. Unit Cost: Payment Total payment processing-related cost incurred by the Accounts Payable Department divided by the total number of payments processed over a certain period of time. Unit Cost: PO Invoice The total cost to process purchase order (PO) invoices divided by the total number of purchase order invoices processed over a certain period of time. Unit Cost: Rushed Check Total cost of rushed checks divided by the total number of checks rushed over a given time period. Unit Cost: Wire Transfers The total cost of procesing wire transfers divided by the total number of wire transfers processed over a certain period of time. Headcount Accounts Payable Employees per Billion Dollars of Revenue The total number of Accounts Payable employees divided by each billion dollars (USD) of revenue. Total Headcount: Accounts Payable The total number of Accounts Payable employees working for the company. Organizational Accounts Payable Outsourcing Rate The number of companies that outsource certain Accounts Payable duties divided by the number of companies surveyed, as a Activity Checklist: Accounts Payable A yes/no metric indicating whether the following functions are carried out within the Accounts Payable Group: remittance posting, invoice processing, invoice payment, vendor management and purchasing/procurement. Organizational Structure: Accounts Payable A yes/no metric indicating whether the Accounts Payable function is centralized or decentralized. Productivity Accounts Payable Transactions per Employee The total number of transactions performed by the Accounts Payable function over a certain period of time divided by the total number of Accounts Payable employees. Invoices Processed per Accounts Payable Employee The total number of invoices processed over a certain period of time divided by the total number of Accounts Payable employees. Cycle Time: Payment Processing Average number of business days required to process an invoice from when the invoice is received to when it is approved and paid. Non-PO Payments per Accounts Payable Employee The number of non-purchase order (PO) invoice payments processed over a certain period of time divided by the total number of Accounts Payable employees. Number of Transactions per Hour The average number of transactions performed by Accounts Payable employees over a single hour. Transactions include invoice processing, bill payments, vendor updates, etc. PO Payments per Accounts Payable Employee The number of purchase order (PO) invoice payments processed over a certain period of time divided by the total number of Accounts Payable employees. To download the full document, please login or register to OpsDog.com Contact Us for Benchmarking Data, Reports, & Other Analytical Services

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