Page 300 - Accounting Best Practices

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Summary
to individual employees (i.e., process-centering), and then set up a continual
process review system so that they are constantly analyzed for further improve-
ments. By taking this approach, one can achieve a remarkable improvement in
the efficiency of all accounting processes.
There are also several best practices related to accounting personnel, which
involve training and job standardization. They are shown in the middle of Exhibit
13.9. By implementing them all, one can not only arrive at a department that
knows exactly what to do and when to do it, but also one that experiences a much
lower degree of turnover. The smaller number of employee departures is caused
by the reduced level of anxiety that goes hand in hand with the reduced number
of problems that are the end result of standardizing jobs and increasing the level
of training.

SUMMARY

This chapter covered a number of best practices that address problems in three
main areas—processes, personnel, and reporting.
Many best practices covered issues in the area of accounting process, with
principal recommendations covering the outsourcing of smaller functions, con-
solidating accounting functions, setting up a database of contract terms, and
focusing closely on the organization of employees around processes. These
changes can bring about a major improvement in the efficiency of accounting
processes.
Other best practices focused on accounting employees. A highly focused and
organized training program is needed, especially when combined with cross-
training for key activities, a policies and procedures manual, and a calendar of
activities. These improvements will help to convert the accounting department
into a highly knowledgeable and well-coordinated group.
Finally, three best practices target changes in the reporting function. One
uses on-line reporting to ensure that information is disseminated as inexpensively
and widely as possible, while Balanced Scorecard and function measurements
are needed to determine the progress of the corporation as a whole and of indi-
vidual departments, respectively, in achieving their goals. Though the reporting
changes will not have an immediate impact on the efficiency of the accounting
department, they will assist in informing management of companywide activities,
resulting in better control over overall operations.