Page 264 - Accounting Best Practices

c13.qxd 7/31/03 3:22 PM Page 253
Chapter 13
General Best Practices

There are a number of best practices that do not fall into any of the categories
listed in the other chapters of this book. They can be clustered into three primary
areas: activities related to processes, personnel, and reporting, as shown later in
Exhibit 13.9. These are all key areas that deserve special management attention
to ensure that they operate properly. Examples of best practices related to
processes include process centering and consolidating accounting functions,
while examples of best practices for personnel include policies and procedures
manuals and training programs. Finally, examples of best practices related to
reporting include the use of on-line and balanced scorecard reporting. A review
of this array of best practices allows one to enhance a number of key activities.

IMPLEMENTATION ISSUES FOR GENERAL BEST PRACTICES
This section covers the general level of implementation difficulty that will arise
when installing the best practices discussed later in this chapter. This information
is primarily contained in Exhibit 13.1, which shows the cost and duration of
implementing each best practice.
The best practices noted in this chapter tend to require larger levels of manage-
ment time than those noted in other chapters, as well as a longer project duration
and higher cost. Examples of this are the consolidation of accounting functions and
switching to on-line reporting, which require a great deal of planning and program-
ming work, as well as (in the first case) the geographical transfer of employees.
Even if these difficult best practices are excluded, the remainder will at least
require some advance planning, along with a week or more of work before they
are fully operational. The biggest problem with most is that they are systems—
they require their own procedures, training, and measurements to ensure that they
work properly. Examples of systems best practices are the continual review of
process cycles, training, and process centering. Due to the extra work required to
create and maintain an entire system, one must be aware of the time and effort
needed before some payback will be realized.
Finally, a few best practices are simple to initiate and complete, require min-
imal management attention, and need only a modest amount of follow-up work
from time to time. These best practices include the creation of a contract terms data-
base, issuing activity calendars, and outsourcing tax form preparation. However,

253