Building of effective accounting for construction companies using key performance indicators (KPI)
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 2, Pages 3928-3936
AbstractIn modern conditions, the speed and efficiency of management decisions are largely dependent on the speed of collection, processing, analysis and transmission of information about financial results formed in the accounting and analytical system of the company. The success of any business depends on efficiently organized accounting. Accounting is declared as a financial indicator of the activities of an enterprise and its financial position. It is very difficult to assess the work of the accounting department, but a system of correctly built key performance indicators (KPI) comes to the rescue. The task of KPI is to make life easier for the head of the enterprise, the owner of the business and ordinary employees. The development of KPI for non-selling departments, and especially for accounting, causes difficulties for most managers who, on the one hand, want to get a tool of control and motivation, but, on the other hand, do not fully understand how they can influence the work of the accounting department, and the outspoken negative of most accountants, for whom KPI were nevertheless set, as they are nothing for them but additional useless scribbling. And so far, only a small number of managers and accountants, mainly in foreign companies, can enjoy the effect of correctly established KPI for the accounting service. KPI help build a monitoring system for the work performed by the accounting service. The main task of the effective construction of accounting for construction companies is correctly selected key performance indicators to control the accuracy of accounting data and timely performed business operations by the accounting service. According to the economic and financial terminology, KPI is the mathematical relationship of the result of work on the means and methods of its implementation, as well as the quality and quantity of resources used. As a result of calculating the dependence, you can understand how close we are to achieving a particular goal and whether we are moving on the right way.
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