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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
KPI
UOM
Measures
Representative Standards
Debt/Equity Ratio
%
Ratio
Say 2:1
Collection/Billing Ratio
Total Collection Amount / Total Billed Amount
Say 98%
Days Outstanding
Days
Time
Say 55 days formonthly billing cycle
Operating Expenses /Energy (kWh)
Paisa per Unit
Planned versus Actual
Say 10 paisa per Unit
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