How efficient is your accounting and finance department? Benchmarking is often used to compare operating results against industry peers to isolate areas for improvement, but what about your accounting and finance department — how are they doing compared to their peers?
The Financial Executives Research Foundation (FERF) and Robert Half have released their 2015 benchmark report providing useful metrics to help answer this question.
The benchmarks, based on the survey of 1,400 companies in the United States and Canada from various industries, may validate your current practices or lead you to begin the process toward a more efficient and effective finance department.
One interesting topic covered by the report was a look at the size of respondents’ chart of accounts and the number of accounts that are reconciled on a regular basis.
A common reaction to the increasing complexity of compliance reporting is the expansion of your chart of accounts. The level of detail in your chart of accounts affects your ability to create reports so you need to go into enough detail so the available data meets your needs, but including too many accounts defeats the purpose of grouping transactions together…
Read the rest of the article on the Grand Rapids Business Journal website.