Connect with us

Measurements Formula for the Accounting and Finance Department

Published

on

The accounting department spends the bulk of its time processing standard transactions, such as billings, cash receipts, expense report processing, and payments to suppliers. Accordingly, many of the measurements in this post focus on the efficiency of these types of activities. There are also measurements covering the payroll, general ledger, taxation, collections, and treasury functions.

A key problem with all of the measurements noted in this post is that the accounting department is usually responsible for compiling the performance measurements of the entire company—which includes, in this case, itself. If the controller or CFO comes upon a measurement that shows poor accounting performance, there will be a temptation to delay release of the measurement or to alter its calculation to make the result look better 🙂  Consequently, the measurements noted here should be assigned to some other department, such as the internal auditing staff, to complete. Alternatively, the measures should be periodically reviewed by someone independent of the accounting department to ensure that they are being properly completed.

Advertisement

 

Measurements to be examined in this post include:

Purchase Discounts Taken to Total Discounts
Percentage of Payment Discounts Missed
Transactions Processed per Person
Transaction Error Rate
Average Time to Issue Invoices
Average Employee Expense Report
Turnaround Time
Payroll Transaction Fees per Employee
Time to Produce Financial Statements
Percentage of Tax Filing Dates Missed
Proportion of Products Costed Prior to Release
Internal Audit Savings to Cost Percentage
Internal Audit Efficiency
Bad Debt Percentage
Percent of Receivables over XX Days Old
Percentage Collected of Dollar
Volume Assigned
Percent of Cash Applied on Day of Receipt
Cost of Credit
Earnings Rate on Invested Funds
Brokerage Fee Percentage
Borrowing Base Usage Percentage

 

Here is the formula list:

Accounting and Finance Dept Measurement-2

Accounting and Finance Dept Measurement Formula-2

Accounting and Finance Dept Measurement Formula-3

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Engineering Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Production Department

Measurements and Ratios For Sales Departments
 

1 Comment

1 Comment

  1. jusuf christianto

    Dec 2, 2009 at 5:55 pm

    this link is very very helpfull… bravo for Putra… salute and so appriciate… keep up date for us especialy accounting finance and tax

Leave a Reply

Your email address will not be published. Required fields are marked *




Are you looking for easy accounting tutorial? Established since 2007, centre-potential.ru hosts more than 1300 articles (still growing), and has helped millions accounting student, teacher, junior accountants and small business owners, worldwide.

Trending


Related pages


pbo accountingauditor engagement letterclassification of accounts receivablesample promissory note letterddb depreciation calculatordelphi forecasting methodmultiple step income statements showterm promissory noteadjusting entry for allowance for doubtful accountsaccelerated depreciation calculatorfinancial statement analysis ratios formulashow to calculate break even point in unit salesexample of cash discountcalculating stockholders equityderivative accounting journal entriespromisary note sampleifrs for revenue recognitionpromisory lettermyob payroll tutorialaccount receivable journal entries adjusting entriessample letter of payment remindercash budget example questionsdefine leaseereasons for variances in budgetsinternal control booksaccounting installment methodfinancial accounting and reporting cpa exam questionsbecker auditimportance of matching principlewage payable journal entrycapitalizing software development costscogs formula manufacturingwash sale examplescpa far exameoq model formulacpa review materialsaccount receivable turnover analysisifrs comprehensive incomeaccounting transposition erroreconomic production quantity formulacontingent liability journal entryrelevance of variance analysis to budgeting and standard costingexample of matching principlecpa exam release datestarget costing process diagramroce analysisifrs interest capitalizationaudit confirmationsmasters in accounting starting salarytenant inducementirs disagreement letterrecording sales returns and allowancesrop supply chainhow to find par value of preferred stockpromissory note sample formflexible budget definition and exampleaccounting for futures contractswhat is borrowing costsample promissory note pdfinitial measurement of property plant and equipmentfinancial statement disclosure checklistaccruals and prepayments exercisespv of lease paymentssale leaseback accountingifrs on impairment of assetsuseful life of vehicles for depreciationdepreciation expense calculatorpivot table update automaticallyjournal entries for periodic inventory systemforecasted financial statementexample of conservatism in accountingfx revaluation