Percentage of total finance function FTEs allocated to the process "manage and process collections"

This measure calculates the percentage of total finance function full-time equivalent employees (FTEs) that perform the process group "manage and process collection," which consists of posting entries to respective accounts, preparing accounts for receivables, managing the cash collected by the business from its debtors, and recording it in the books of accounts to provide clear information about the availability of the cash. It is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "manage and process collections" process.

Benchmark Data

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Measure Category:
Supplemental Information
Measure Id:
102013
Total Sample Size:
881 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are percent.

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(Number of FTEs who perform the process "manage and process collections" / Number of FTEs who perform the function "manage financial resources") * 100

Key Terms

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FTE - (full-time equivalent employee)

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

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.

Measure Scope

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Cross Industry (7.2.1)

  • 9.2.4.1 - Establish policies for delinquent accounts (10804) - Creating a process to follow in case of a failed payment by account holders. Create rules and regulations for the account holder who has failed to make at least the minimum monthly payment by the due date.
  • 9.2.4.2 - Analyze delinquent account balances (10805) - Examining balance statements of accountholders who failed to make required payments. Study or review the account details of customers' past payments when preparing negotiations policies.
  • 9.2.4.3 - Correspond/Negotiate with delinquent accounts (10806) - Determine ways for customers in default to repay debts (e.g., allowing more time or discounts).
  • 9.2.4.4 - Discuss account resolution with internal parties (10807) - Determining rules for handling accounts. Discuss and plan with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
  • 9.2.4.5 - Process adjustments/write off balances (10808) - Maintaining reserves for write-offs and adjustments. Adjust or write off certain expenses and losses.
  • 9.2.4.6 - Perform recovery workout (14007) - Renegotiating the terms of a loan agreement in order to recoup money from a default account.
  • 9.2.4.7 - Manage default accounts (14008) - Managing accounts that have not met the requirements agreed upon to pay off outstanding debts.