Metric definitions
A metric is only useful when two companies measure it the same way. Each metric is written with the fields below. More definitions are coming from contributors.
Score terms
These are the terms used in how the score works.
| Term | Plain meaning |
|---|---|
| Steps | How many planned steps the work takes from start to finish. Rework is not counted. In the deeper view the standard ideal is 6, and it can differ per flow later. |
| Loops | Every time work goes back to an earlier step to fix something. This is where rework shows up. The loop count is still reported so people can see it fall. The ideal is none. |
| Owners | How many people or teams touch the work. |
| Break time | How many working days the work waits between steps while nobody works on it. Weekends and holidays are not counted. Break-time bands and ideals are assumptions for now. |
| Not sure | Counts as the lowest band. |
| Band | One of five answers to a scored question. It maps to a ratio: 5 = 1.0, 4 = 0.8, 3 = 0.6, 2 = 0.4, 1 = 0.2. |
| Area efficiency | (steps + loops + owners + 2 x break) / 5, using the band ratios. Break time counts double. The weights are a starting point and will change as practitioners weigh in. |
| Area score | Area efficiency x 10, out of 10, to one decimal. |
| GAAPx Score | The average of the eight area scores x 10, a whole number out of 100. It is self-assessed. It is always based on 8 of 8 areas, and the report notes any areas with blank answers. |
| Workflow efficiency | The deeper view for a workflow you pick: the same formula using actual steps, loops, owners and break days against the ideals. |
A skipped question or a "Not sure" counts as the lowest level (band 1, 20 percent). The weights stay the same, and every area is always scored. An area with all four questions blank scores 2.0 out of 10.
AI oversight terms
These terms are used in governance and AI risk and the NIST AI RMF mapping. AI oversight is asked once for the whole finance function and never changes the GAAPx Score.
| Term | Plain meaning |
|---|---|
| Intent | The control is written down: a policy, a list, a defined check or a named person. |
| Tested | There is evidence the control works: a sign-off, a result, a drill or a log you could show an auditor. |
| Must-have item | An AI oversight question that must be answered Yes. If it is not, the level cannot go above AI on hold. "Partly" and "Not sure" do not meet a must-have item. |
| Govern | Who is accountable for AI use in finance. |
| Map | Knowing where AI and data are used. |
| Measure | Checking that AI output is right. |
| Manage | Being able to trace, pause and undo AI work. |
Govern, Map, Measure and Manage are the four functions of the NIST AI Risk Management Framework. GAAPx is informed by that framework. It makes no claim of certification, alignment, compliance or endorsement.
The template
| Field | What to write |
|---|---|
| Name | The short name used in GAAPx. |
| Plain meaning | One sentence a non-specialist can follow. |
| Numerator | What is counted or summed. |
| Denominator | What it is divided by, if anything. |
| Unit and direction | The unit, and whether lower or higher is better. |
| Period | The time window measured. |
| Source | Where the data comes from. |
| Exclusions | What is left out, and why. |
| Workflow informed | Which workflow in the eight areas it speaks to. |
Worked examples
Invoice cycle time
- Plain meaning: how long a supplier invoice takes from arriving to being approved for payment.
- Numerator: total days from invoice receipt to approval for payment, summed across invoices.
- Denominator: number of invoices approved in the period.
- Unit and direction: days; lower is better.
- Period: a calendar month.
- Source: accounts payable system timestamps.
- Exclusions: invoices on dispute hold, credit memos.
- Workflow informed: Spend, Invoice intake.
First-pass match rate
- Plain meaning: the share of invoices that match their purchase order and receipt with no manual fix.
- Numerator: invoices matched without manual intervention.
- Denominator: invoices processed in the period.
- Unit and direction: percent; higher is better.
- Period: a calendar month.
- Source: accounts payable system match results.
- Exclusions: non-PO invoices.
- Workflow informed: Spend, Match and approve.
Days to close
- Plain meaning: how many business days after period end the books are closed.
- Numerator: business days from period end to close sign-off.
- Denominator: none; this is a single count per period.
- Unit and direction: business days; lower is better.
- Period: each month end.
- Source: close calendar and sign-off record.
- Exclusions: year-end close, reported separately.
- Workflow informed: The Close, Subledger close and accruals.