Where did Accounting Come From?

If corporations want to stay successful, they need to find new ways of expanding their market. Lots of big corporations have already globalized, and many more will follow. If these companies are globalizing, it would make sense to have globalized accounting systems.

Currently, companies in the US use generally accepted accounting principles (GAAP) to report their financial statements; while the rest of the world use international financial reporting standards (IFRS). The U.S. Securities and Exchange Commission plans to switch from GAAP to IFRS in the near future.

Why Have KPIs?

We all have heard the expression, “What gets measured gets done”. Having metrics that support the key business plan objectives appropriate to each process and level of the organization helps ensure that everyone hears the same message, understands their role and knows how well they are contributing to the business goals. Selection of the correct metrics will:

• Communicate direction (the business plan trend performance).

• Stimulate action in the most important areas (the business plan)

• Establish the current situation against the business plan goals

• Facilitate learning (where the business stands against world class performance)

• Influence behavior (what gets measured gets attention and action)

Getting Started – Bottlenecks First

If your organization does not have Key process metrics, start by developing a group of measurements in perceived bottleneck areas; areas that are having the greatest impact on meeting the business goals or customers needs.

The process is very simple

• Start by interviewing all the staff involved in the process, all shifts if there are more than one. Understand all the issues that are preventing or causing the process to be impacted.

• Put the issues on a list and have the staff document each time the problem occurs and any supporting data that can be provided.

• Pick those that are the easiest to correct and get them fixed immediately.

• If more data is needed such as shift, time of day, weather conditions etc, add these items to the collection process.

• Use the classical problem solving tools of 6-Sigma to understand the data and begin a controlled change of the process.

• If new causes are detected change the collection record to allow reporting of these new causes.

• Don’t stop measuring even when the problem is resolved; kept those metrics that will provide a picture of the business process trend (KPI).

Once a KPI metric is selected the work begins. Behind each metric there must be a process. The process can be a work instruction or a formal procedure.

• A work instruction or procedure on how the data will be collected, analyzed and reported

• Who will be responsible for the data collection, what form will be used to collect it how will the data be stored pending analysis

• The graphing or tabular format to be used to communicate accumulated data

Key Process Indicators – Measure What is Important to Your Business

What is the reason of billing companies for using the billing software? Calculations have long been done manually anywhere in the world. Thanks to the technological advancements, billing companies can now save time and effort in handling all the billing tasks efficiently. Some of the benefits are saving on overhead costs, electricity, ink, and time. As you can see, when the bills are sent via email, there is no need to print them on paper so you get to save electricity, ink, and paper. When consumers opt for billing software, they can be reminded about the due dates and they can just pay the bills at home or in the office. Billing companies can quickly handle all the collections and payments that also help consumers in avoiding paper trails.

No matter what people think, it seems like the US SEC has made up their mind to make the IFRS mandatory for big, global companies. It is clear that many of the disadvantages of IFRS are just short term, for example the costs of transition; while the advantages are long term. Whether they are able to accomplish it in the current deadline of 2014 is another thing

Resource Author Francisco Rodriguez Higueras
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