Percentage of FTEs that perform the process "perform general accounting" that perform the activity "reconcile general ledger accounts"
This measure calculates percentage of full time equivalents (FTEs) that perform the process "perform general accounting" who perform the activity "reconcile general ledger accounts". The general ledger is a book in which monetary transactions in the form of debits and credits are posted from a journal. Financial statements are produced from the general ledger. General ledger accounts are often control accounts that report totals of details included in subsidiary ledgers. The process "perform general accounting" includes [Applying basic principles, concepts, and accounting practices in recording and preparing final accounts, and using accounting information in management.]. The activity "reconcile general ledger accounts" includes [Reviewing general ledger accounts for a parent and subsidiaries companies. Validate the integrity of account balances on the company's general ledger of accounts. Review and compare general ledger accounts balances with source documents to ensure that balances match. ]. This Supplemental Information measure is intended to help companies evaluate additional variables related to the activity "Reconcile general ledger accounts".
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Learn about Membership| 25th | Median | 75th |
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Compute this Measure
Units for this measure are percent.
(Number of FTEs who perform the process "perform general accounting" who reconcile general ledger accounts / Number of FTEs who perform the process "perform general accounting") * 100
Key Terms
To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.
For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:
20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting
20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.