The accounts payable team is one of the most important in the accounting function. However, many APteams are stuck in the dark ages, which means:* monthly accounts cannot be prepared promptly, as AP is buried under a tsunami of invoices* budget holders are unnecessarily tied up in authorising and approving all transactions– no matter how […]
Many performance measures are created from a flawed process. Frequently the task of finding measures is carried out at the last minute by staff members who do not have a clue about what is involved in finding a measure that will create the appropriate behavioral response. Chapter 12 looks at common reasons why organizations get […]
The average cost of a whole purchasing cycle is estimated at £30 to £40 per transaction. This cost is horrific when you realise that a high portion of your transactions is for minor amounts. The diagram to the right shows a typical profile of accounts payable(AP) invoices. Read More
The one sure thing about annual planning is that it will be wrong – its underlying assumptions have been flawed since LucaPacioli invented double entry bookkeeping in 1494.This article completes my look at the foundation stones of rolling planning, a more useful alternative. Read More
It is vital to generate realistic forecasts rather than forecasts that the board or senior management wants to hear. The board might want a 20 percent growth in net profit, yet management might see that only 10 percent is achievable with existing products, customers and capacity constraints. If the forecasting team reports what the board […]
Many companies are working with the wrong measures, many of which are incorrectly termed key performance indicators (KPIs). I believe it a myth to consider all performance measures to be KPIs. From my research over the last twenty five years I have come to the conclusion that there are four types of performance measures:
1. Key […]
To what degree has your finance team embraced the LEAN movement? – Invitation to attend a webcast run by ICAEW.
Join David Parmenter for a webinar on 9 October, 2014 at 9:00 AM (GMT). There is a small cost of non-members.
LEAN has now been embraced by accounting functions around the world. LEAN has not only re-engineered […]
James Surowiecki wrote that “a large group of people are often smarter than the smartest people in them.” Hence the term “wisdom of the crowd was born”. In other words, a group’s aggregated answers to questions that involve quantity estimation have generally been found to be as good as, and often better than, the answer […]
Stacey Barr in her PuMP methodology has pointed out the benefit of showing performance measures on the walls in a room. Visitors from around the company come for a coffee and leave notes about their concerns or issues relating to a particular measure, on post-it stickers. This system is using “Wisdom of the crowd”. An […]
We all can be better at presenting.I highly recommend attending ‘a train the trainer ‘course for all those presenting on a regular basis. please read my article