Profit – focused accounting

KPI Name: Profit Focused Accounting Balanced Scorecard Metrics

Related KPIs: Retail Sales, Sales, Credit Risk, Retail Banking, Mortgage, Financial Statement Analysis, Market Risk, Financial Risks, Operational Risk, Active Portfolio Management, Passive Investments, Accounting Firm, Credit Card Processing, Financial Crisis, Budgeting and Forecasting, Investment Banking, Financial Securities, Financial Insurance Company, Leasing Company, Asset Management Firm, Brokerage Firm, Wealth Management, Activity Based Management, Value Based Management, Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

Customers also viewed: Finance Metrics | Banking Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Profit Focused Accounting Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Balanced Scorecard Designer Screenshot:

Profit

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Profit focused accounting is the latest trend in the area of production and manufacturing. Enhancing the adoption of this trend are the key performance indicators, which focus on the essential dynamics of profit-focused accounting.

In this context, four perspectives can be considered. These are – Cost reduction, Quality improvement, Manufacturing processes, and Education & learning.

Cost reduction considers such critical factors as less rework, reduction in mistakes, increase in productive man-hours and better utilization of machine time. These factors result into cost reductions that finally lead to profits.

Quality improvement teams, quality evaluation time, supervisors training, and quality awareness are the factors, which make the business quality-oriented. These indicators reflect the quality improvement initiatives undertaken by the management

Third perspective, i.e., manufacturing process specifies the improvement required to enhance the productivity and includes reduction in number of processes, and the number of productivity tools employed, percentage reduction in inventories and increase in the number of units produced.

Education & learning perspective involves improving the overall business performance by improving the employees- efficiency. This perspective specifies the number of training supervisors, number of on-the-job training sessions, discussions with senior management, and employee empowerment scheme.

These perspectives culminate into increased profit to the business, which gets reflected in the accounting.

KPI in Excel – Screenshot:

This is the actual scorecard with Profit Focused Accounting Dashboard and performance indicators.