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Metrics for Financial Accounting Processes

Six Sigma – iSixSigma Forums Old Forums Finance Metrics for Financial Accounting Processes

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  • #24693

    Sayyed
    Participant

    Dear Forum Members:
    I am working for a Financial Accounting process for a large bank. We support the bank’s Investment banking & Assets Management operations. Primarily, we perform activities such as Inter-company accounting, transfer pricing, invoice-booking, passing journal enties, reconciliations of various books & statements, etc.
    My specific question is what could be the likely metrics we should measure with aim for improvements to enhance overall process effectiveness & efficiency.
    I understand that this should come from the customers or process owners however I have tried and it has not worked very well as these people are used to working in a metric-less environment and do not see any merit in measurements. I wanted to start measuring some important metric and showcase its improvement so that my actions speak for themselves – so re-iterating – what are the likely metrics in a Financial Accounting scenario. I have management buy-in.
    Best Regards, – Neal.
     

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    #59186

    Brandon
    Participant

    Neal, you may want to look at the Project Selection Process Packet in eBooks on this site. It is a structured approach to identifying what you’re talking about.

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    #59187

    Tony Bo
    Member

    To your overall question…identify the important key processes in your area…find out the output of that process ..and then find out, is it a cycle time or accuracy measure around that output that is important to the customer, are you meeting that metric consistently with your customer.  If not..then that is a possible project opportunity.  Example:  invoice booking…..possible metrics are volume (how many done, by processor),  how fast you do it, how accurately/ mistakes are made in doing it.   

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    #59194

    APW
    Participant

    Neal,
    I think you have a very good question.  I thought the way you did when I first started to study about 6 Sigma.  Six Sigma focuses on process improvements that create high value first then the ones that provide the smallest return on investment of time and effort.  I think the best places to find out where you can chip in to improve something is to attend town meetings, ask to get involved with attending more senior meetings with your manager, read corporate literature, officer letters published to the company, notes to the financial statements, internal audit reports, external audit comments.  These are very great sources for you to see what might be going on in your organization that senior officers are concerned about and focusing efforts. 
    I am sort of new at Six Sigma in applying the science, but I have read a lot and have worked on many process improvement projects at this juncture.  I could be wrong, and I look forward to someone correcting me if I am incorrect.  LOL>  This is great stuff.  I hope I helped you.

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