In a previous post, I directed interested parties to an assessment tool so that they could benchmark their accounting function against a defined set of metrics.
If you missed that post and are interested in using that assessment tool, here’s the link to the survey: https://www.osbornefinancialsearch.com/accounting-finance-performance-evaluation/.
If you’re interested in a more seat-of-your-pants snapshot of how well your accounting function is doing, see how many of the following statements apply to you.
If you only agree with 10 or fewer of the following statements, you may want to use the assessment tool after all.
- My monthly financial statements are timely and accurate.
- Our accounting department has well-documented policies and procedures.
- I’m happy with our ERP / internal IT systems.
- Our budgeting process runs smoothly, and I get a monthly relevant analysis of actual performance against budget.
- I have a robust dashboard of operational metrics.
- We have a good handle on our cash flow. A short-term cash forecast is available, and receivables are in good shape.
- My finance function has a good relationship with the other departments.
- My end-of-year notice to readers/audit always goes smoothly.
- I’m confident we have the proper internal controls in place to preserve company assets.
- My finance function will keep up as the company grows.
- I get good financial analysis to support decision-making on capex projects, pricing decisions, and other new initiatives.
- Our tax exposure is kept at a minimum.
- My head of finance has a proactive and lucid communication style.
- We are in compliance with our debt covenants.
- Our accounting staff is well-trained and knowledgeable about their duties.
- We have a good handle on our costs and profitability across all lines of business.
- I’m comfortable personally with my head of finance.
- There is a minimum of duplication and wasted effort in the finance department.