Accounting & Finance KPIs

Purpose

The purpose of these KPIs is to assist accounting & finance staff and management optimise throughput thereby helping reduce costs, and maximise profit. They provide pointers at the financial performance of the business, both as a single entity and broken down into specific, relevant departments. KPIs use either a single parameter or a combination of parameters, often generated automatically by 'counters' whereby the output is a comprehensive performance indicator in itself.

Scope

The scope of these Key Performance Indicators is limited to activities, as defined by the organisation, to lie inder the relevant business area. However the data used by and/or collected by the counters and measurement tools could originate from anywhere within - or without - the business. Each individual KPI is reviewed to assess it's "fitness for purpose" on a periodic basis as defined by the KPI owner. This is a temporary message - once each individual 'scope" document is written, it will be replaced within the coding that produced this KPI document.

Definitions

Each KPI is described by the following items:

KPI ID Number: contains the full name of the KPI.
Target Value: contains the max or min threshold
Frequency: describes the type of measurement i.e. daily, weekly, or monthly.
Description: this item provides short explanation of the KPI.
Formula: this item contains the formula composed by the counters for the KPI.
Counters: this item contains counters used for calculation and described how they are triggered.
Object Class: this item shows from which element the measurement statistical data are taken.
Tools: this item shows which tool is used to calculate the KPI.
Trigger: the event that starts the KPI measurement.
Terminator: the event that stops the KPI measurement.
Parameter: the limiting factor in a performance measurement
Unit Range: this items shows the unit range value of the KPI.
Review Period: this defines the aging process of the KPI. It helps management ensure it's use is relevant.
Owner: this item reflects who has the authority to adjust the KPI paramaters and to whom any queries should be addressed concerning the measurements.
Remark: this item is sometimes added to write notes and additional information.
Process: the process or processes (or work instruction/procedure) to which this KPI is applicable. Please note that any links shown are under development and not yet functional

A measurement type can have several sub-counters; therefore the used sub-counters are listed in brackets with following meanings as examples:

[3]: sub-counter 3 has to be taken.
[1,2,4]: sub-counters 1, 2 and 4 have to be added.
[1 - 4, 7 - 10]: sub-counters 1, 2, 3, 4, 7, 8, 9 and 10 have to be added.
[all]: all sub-counters have to be added.

Not all Definitions apply to every KPI. Where an element has no value in the database, it is not displayed.

Note that when the average of a series of inputs is calculated, this is taken to be the arithmetic MEDIAN.

Measurables

Click on a button for more details of the KPI.

AF1 Accounting Costs	AF2 Accounts Payable	AF3 Accounts Payable Turnover	AF4 Accounts Receivable Collection Period	AF5 Accounts Receivable Turnover
AF6 Accurate Statutory Returns Filed	AF7 Actual vs. Budgeted Costs	AF8 Age Of Assets	AF9 Bad Debts Against Invoiced Revenue	AF10 Balanced Budget (Years)
AF11 Budget Closure Lag	AF12 Budget Closure Lead	AF13 Budget Cuts Achieved	AF14 Budget Deviations (Number)	AF15 Budget Forecast Accuracy
AF16 CAGR	AF17 Cash	AF18 CFROI	AF19 COGS	AF20 Common Stock Equity
AF21 Corporate Credit Rating	AF22 Cost Income Ratio	AF23 Creditor Days	AF24 Days Payable	AF25 Debtor Days
AF26 Direct Costs	AF27 Discounts Lost	AF28 Disputed Invoices	AF29 EBIT	AF30 EBITDA
AF31 Electronic Invoices	AF32 Enterprise Value	AF33 Equity Ratio	AF34 Expense Reimbursements	AF35 Expense Report Exception Line Items
AF36 Expenses Claims Processed	AF37 Financial Reports Issued	AF38 Fixed Costs	AF39 Gearing	AF40 Goodwill
AF41 Gross Profit	AF42 Gross Profit Margin	AF43 Indirect Costs	AF44 Inventories	AF45 Invoice Error Resolution
AF46 Invoices Under Query	AF47 Invoicing Processing Costs	AF48 Long-Term Debt	AF49 Low Value Invoices	AF50 Manual Payroll Payments
AF51 Marginal Costs	AF52 Net Change in Cash	AF53 Net Fixed Assets	AF54 Net Profit Margin	AF55 Net Receivables
AF56 Operating Income	AF57 Operating Margin	AF58 Other Current Assets	AF59 Other Current Liabilities	AF60 Other Non current Assets
AF61 Other Non current Liabilities	AF62 Outstanding Invoice (Number)	AF63 Outstanding Invoice Value (Average)	AF64 Outstanding Invoice Value (Total)	AF65 Overdue Invoice Value (Average)
AF66 Overdue Invoice Value (Total)	AF67 Overdue Invoices (Number)	AF68 Payables Management Effectiveness	AF69 Payroll Error Correction Time	AF70 Payroll Payment Errors
AF71 Payroll Process Costs	AF72 Payroll Processing Time	AF73 Payroll Systems Costs	AF74 Payslip Production Costs	AF75 Periodic Closure
AF76 Planned Budget Deviation (Value)	AF77 Preferred Stock Equity	AF78 Profit Per Customer	AF79 Profit Per Employee	AF80 Profit Per Product
AF81 Profit Per Project	AF82 Receipts Amount	AF83 Receivables Against Product	AF84 Receivables Against Purchase Office	AF85 Receivables Against Region
AF86 Receivables Against Sales office	AF87 Retroactive Pay Adjustments	AF88 Revenue (P&L)	AF89 ROCE	AF90 ROE
AF91 SG&A expenses	AF92 Shares Outstanding	AF93 Short-Term Debt	AF94 Special Payment Invoices	AF95 Statutory Returns Submissions
AF96 T & E per Head	AF97 Total Assets	AF98 Total Current Assets	AF99 Total Current Liabilities	AF100 Total Equity
AF101 Total Liabilities	AF102 Total Receipts	AF103 Unapplied Receipts	AF104 Unmatched Payable Invoices	AF105 Unsettled Invoices (Average Value)
AF106 Unsettled Invoices (Number)	AF107 Unsettled Invoices (Total Value)	AF108 Untimely Payroll Payments	AF109 Variable Costs	AF110 Weighted Average Days Due
AF111 Weighted Average Days Paid	AF112 Weighted Average Days Past Due	AF113 Weighted Days Delinquent Sales Outstanding	AF114 Weighted Terms Outstanding

Details

KPI AF1	Accounting Costs
Description	The total amount of money or goods expended in an endeavour. It is money paid out at some time in the past and recorded in journal entries and ledgers.
Unit Range	Local Currency
Process

KPI AF2	Accounts Payable
Description	Money owed (payable) to suppliers for goods or services purchased on credit that must be paid within a year.
Unit Range	Local Currency
Process

KPI AF3	Accounts Payable Turnover
Description	Shows how many times in one accounting period the company repays its accounts payable to creditors
Process

KPI AF4	Accounts Receivable Collection Period
Target Value	Minimise
Description	How many days it takes to collect all accounts receivable.
Unit Range	Days
Remarks & Comment	Fewer days means the company is collecting more quickly on its accounts
Process

KPI AF5	Accounts Receivable Turnover
Description	Shows the number of times accounts receivable are paid and reestablished during the accounting period
Process

KPI AF6	Accurate Statutory Returns Filed
Target Value	Maximise
Description	Number of instances where statutory returns filed with the authorities are accurate.
Process

KPI AF7	Actual vs. Budgeted Costs
Description	The actual costs relative to the budgeted costs of an activity.
Process

KPI AF8	Age Of Assets
Description	Calculated by dividing the cumulative depreciation by the annual depreciation charge.
Process

KPI AF9	Bad Debts Against Invoiced Revenue
Target Value	Minimise
Description	Percentage Of Bad Debts Against Invoiced Revenue
Unit Range	%
Process

KPI AF10	Balanced Budget (Years)
Target Value	Maximise
Description	Number of years with a balanced budget
Process

KPI AF11	Budget Closure Lag
Target Value	Minimise
Description	To benchmark against the previous budget as well as against the industry standard.
Unit Range	Days
Process

KPI AF16	CAGR
Description	Compound Annual Growth Rate
Formula	((V(E) ÷ V(S))(1/(E - S)))- 1
Counter Descriptions	V(E): Value at the end of the accounting period. V(S): Value at the start of the accounting period. E: End of the accounting period. S: Start of the accounting period.
Unit Range	%
Process

KPI AF18	CFROI
Description	Cash Flow Return on Investments
Formula	Cash Flow ÷ Market Recapitalisation
Counter Descriptions	Cash Flow ÷ Market Recapitalisation
Unit Range	%
Remarks & Comment	Similar to ROI, but Cash is used in place of Profit.
Process

KPI AF19	COGS
Description	Cost of Goods Sold. All expenses directly associated with the production of goods or services the company sells..
Formula	Materials + Labour + Overheads + Depreciation + ...
Counter Descriptions	Materials + Labour + Overheads + Depreciation + ...
Unit Range	Local Currency
Remarks & Comment	Does not include SG&A.
Process

KPI AF21	Corporate Credit Rating
Description	The credit rating of a corporation is a financial indicator to potential investors of debt securities such as bonds. Credit rating is usually of a financial instrument such as a bond, rather than the whole corporation. These are assigned by credit rating agencies such as A. M. Best, Dun & Bradstreet, Standard & Poor's, Moody's or Fitch. Ratings often have letteric designations such as A, B, C.
Process

KPI AF12	Budget Closure Lead
Target Value	Maximise
Description	The earlier it is closed & made available, the more time available to discuss it in detail & work out next year strategies sufficiently in advance before the year begins.
Unit Range	Days
Process

KPI AF13	Budget Cuts Achieved
Target Value	Maximise
Description	Percentage of budget cuts achieved (measured in money) versus budget cuts planned (measured in money).
Unit Range	%
Process

KPI AF14	Budget Deviations (Number)
Target Value	Minimise
Description	Number of budget deviations
Process

KPI AF15	Budget Forecast Accuracy
Target Value	Maximise
Description	Actual budget (costs) relative to the established budget.
Unit Range	%
Process

KPI AF17	Cash
Description	Consists of cash, and may include cash-like items such as short-term investments that can be quickly converted to cash
Unit Range	Local Currency
Process

KPI AF20	Common Stock Equity
Description	The amount of shareholders’ equity attributable to common stock
Unit Range	Local Currency
Process

KPI AF22	Cost Income Ratio
Target Value	Minimise
Description	The cost:income ratio (or efficiency ratio) measures operating costs as a percentage of operating income. The ratio, which will vary across the eterprise, should be as low as possible (but not so low that it compromises customer service).
Unit Range	%
Remarks & Comment	Companies hope to reduce their cost income ratio as the business grows thanks to economies of scale. The idea is that additional revenue from existing or new customers has a relatively low cost associated with it and so is increasingly profitable. This is sometimes described as "positive jaws" between income and expense growth - ie income grows faster than expenses, creating bigger profits.
Process

KPI AF23	Creditor Days
Description	The average time that a company takes to pay its creditors
Unit Range	Days
Process

KPI AF24	Days Payable
Description	How many days it takes to pay accounts payable
Formula	avg(Σ(DIS)) - avg(Σ(DIR))
Counter Descriptions	DIS: Date Invoice Settled DIR: Date Invoice Raised
Unit Range	Days
Process

KPI AF25	Debtor Days
Description	A measure of the average time payment takes
Unit Range	Days
Process

KPI AF26	Direct Costs
Description	A price that can be completely attributed to the production of specific goods or services. Direct costs refer to materials, labour and expenses related to the production of a product.
Unit Range	Local Currency
Remarks & Comment	Other costs, such as depreciation or administrative expenses, are more difficult to assign to a specific product, and therefore are considered indirect costs.
Process

KPI AF27	Discounts Lost
Description	Cost of passing up discount by paying invoice after discount period
Unit Range	Local Currency
Process

KPI AF28	Disputed Invoices
Description	Percentage Of Invoices Disputed
Unit Range	%
Process

KPI AF29	EBIT
Description	Earnings before interest and taxes.
Unit Range	Local Currency
Process

KPI AF30	EBITDA
Description	Earnings before interest, taxes, depreciation and amortization.
Unit Range	Local Currency
Process

KPI AF31	Electronic Invoices
Description	Percentage Of Electronic Invoices
Formula	(Σ(I(E)) ÷ Σ(I)) × 100
Counter Descriptions	I: All Invoices. I(E): Electronic Invoices
Unit Range	%
Process

KPI AF32	Enterprise Value
Description	Enterprise Value (a.k.a. Takeover Value)
Unit Range	Local Currency
Process

KPI AF33	Equity Ratio
Description	Equity Ratio indicates the relative proportion of equity used to finance a company's assets.
Unit Range	%
Process

KPI AF34	Expense Reimbursements
Description	Cycle Time For Expense Reimbursements.
Unit Range	Days
Process

KPI AF35	Expense Report Exception Line Items
Description	Percentage Of Expense Report Exception Line Items
Unit Range	%
Process