Evaluating the efficiency of the accounting function at holdings

The management of large companies with branched territorial structures, such as holdings and multidivisional enterprises, face problems regarding the efficiency of their accounting office organization and operation.

This issue can arise both before and after the reorganization of the accounting function of the whole holding structure. Reorganizing the accounting function can be part of projects to reorganize the individual enterprises/groups of enterprises, unify and optimize business processes, implement corporate applications, partially or totally centralize accounting processes, outsource accounting processes to an external organization or a holding enterprise and decentralize the accounting process.

Evaluating the accounting function should be done with regard to achieving the goals of such an evaluation. The following groups of relevant goals can be identified:

  • Quality of the outputs from the accounting function operation:
    • validity and reliability of the reporting data (acceptable level of data validity and reliability)
    • presence in the reports of the information necessary for justified decision making
  • Duration of the reporting generation and the guarantee of its timely completion
  • The costs of the accounting function operation and accounting processes efficiency. The following tasks must be performed to improve accounting function efficiency:
    • elimination of procedure duplication
    • elimination of redundant procedures
    • improvement of available resources utilisation
    • standardization of similar processes in the holding’s various divisions

We take into account the following parameters in evaluating the efficiency of the accounting function organization at holdings and multidivisional enterprises:

  • industrial specifics of the enterprise
  • the enterprises geographical location
  • the enterprises organizational design, including the current set of regulations governing the organizational units, key performance indicators, job descriptions and regulations
  • organizational and functional structure of the accounting function
  • division of responsibilities between the accounting function and the organizational units
  • numbers and professional competence of accounting specialists
  • required forms of book-keeping, tax and managerial recording
  • document flow schedule
  • employed ITs, companys IT strategy.



For more information on accounting advisory services please contact:

Valeria Polyakova, FBK Consulting Partner
e-mail: PolyakovaV@fbk.ru

Elena Tyutyunnikova, director of the accounting advisory department
e-mail: TyutyunnikovaE@fbk.ru

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