Page 266 - Accounting Best Practices

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13–1 Compare Performance to Peer Metrics on the Internet
Exhibit 13.1 (Continued) 255
Best Practice Cost Install Time
Training
13–22 Create accounting training teams
13–23 Create an ongoing training program for
all accounting personnel
13–24 Create computer-based training movies
13–25 Implement cross-training for mission-
critical activities

restricting one’s implementation of best practices to just these items would be a
mistake, for the level of accounting efficiency will rise dramatically when the
more difficult implementations are successfully completed.
The remainder of this chapter is grouped into sections, each of which covers
one best practice. In each section, there is a discussion of the problems that a best
practice can alleviate, how the best practice works, and any implementation prob-
lems that may arise.

13–1 COMPARE PERFORMANCE TO PEER METRICS
ON THE INTERNET

The accounting staff may be asked to issue reports to management that compare
the company’s performance to that of other companies. Previously, obtaining this
comparative information can be a painful process of poring through 10-K or 10-
Q reports, extracting information for multiple companies, and summarizing it for
use in internal reports. Now the www.cfo.com Web site has created a simpler
approach to obtaining peer information through its free PeerMetrix service. The
site contains four possible scorecards, which cover comparisons for cash, cost
management, working capital, and tax efficiency. Select one of these options,
pick a time frame for the collected information, and enter one of two options for
defining which companies to use in the sort criteria. These options include up to
five company tickers or a three-digit Media General Financial Services (MGFS)
industry code that will automatically include all public companies in the selected
industry category. The Web site will respond with the following types of informa-
tion:

• Cash metrics. Number of days operating expenses held in cash, cash on
hand, change in cash on hand, change in operating revenue, cash on hand as
a percent of operating revenue, and cash per common share