Finance and Accounting in KPI
Every business is completed to earn some profit and it is the underline concept. The main tasks are to manage the finances efficiently to meet the future requirement, to earn profit and to incur the cost prudently. It also gives a trigger whenever any expense goes out of gear. These are expressed in ratios, expenses per unit of results etc.
Finance and Accounting - Proposed KPIs
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KPI
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UOM
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Measures
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Representative Standards
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Debt/Equity Ratio
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%
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Ratio
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Say 2:1
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Collection/Billing Ratio
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%
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Total Collection Amount / Total Billed Amount
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Say 98%
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Days Outstanding
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Days
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Time
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Say 55 days formonthly billing cycle
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Operating Expenses /Energy (kWh)
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Paisa per Unit
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Planned versus Actual
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Say 10 paisa per Unit
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