Best Practices for Enterprise Financial Management (Completed)

Management accounting practices have become increasingly progressive since the 1980s. What are the best practices? They include channel and customer profitability reporting, integration with enterprise performance management methods (e.g., strategy maps, balanced scorecard), driver-based rolling financial forecasts, fast accounting period closing of the books, chargebacks from shared services like IT, and applying analytics. Accounting professionals need mastery with these.

Who Should Attend
CFOs, Financial officers and controllers, Managerial and cost accountants, Financial and business analysts, Budget managers, Strategic planners, Marketing and sales managers, Supply chain analysts, Risk managers, CIO and information technology staff, and Board of Directors.

Topics Covered

• Expansion from product costing to include channel and customer profitability reporting and analysis
• Integration of managerial accounting with other enterprise and corporate performance management (EPM/CPM) methods (e.g., the balanced scorecard, incentive compensation, risk management, supply chain management)
• The shift from historical reporting to predictive accounting (e.g., marginal / incremental costing; rolling financial forecasts, performance-based and driver-based budgeting, customer lifetime value [CLV])
• Reducing the time period of the monthly accounting closing of the books
• Chargebacks to internal users and service level agreements of information technology (IT) and shared services
• Embedding analytics into managerial accounting (e.g., correlation and segmentation analysis, recursive partitioning with decision trees).
• Recognition of barriers slowing the adoption rate of advanced managerial accounting (e.g., resistance to change, being held accountable, weak leadership) to gain buy-in

Learning Objectives

• Recognize how these best practices have expanded accountants from "bean counters" to "bean growers"
• Calculate profit and loss statements for customers displaying profit margin layers
• Identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards
• Recognize how to perform "predictive accounting" for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
• Identify how to imbed statistics and analytics into product, channel, and customer profitability analysis
• Describe how to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Finance (2 hours)

Program Prerequisites
None

Advance Preparation
None