Total cost to perform the process group "perform general accounting and reporting" (excluding fixed assets) as a percentage of revenue

This measure calculates the total cost as a percentage of revenue to perform the process "perform general accounting and reporting" (excluding fixed assets), which consists of preparing financial statements (i.e. balance sheet, income statement, statement of cash flows, and statement of stockholders' equity) according to accounting concepts and principles. The total cost is the sum of outsourced, overhead, personnel, system, and other costs. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the "perform general accounting and reporting" process.

Benchmark Data


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Measure Category:
Cost Effectiveness
Measure Id:
Total Sample Size:
1,397 All Companies
Key Performance

Compute this Measure

Units for this measure are percent.

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((Total cost to perform the process "manage policies and procedures" + Total cost to perform the process "perform general accounting" + Total cost to perform the process "perform financial reporting") / Total business entity revenue) * 100

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.


The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 9.3.1 - Manage policies and procedures (10747) - Creating procedures to perform general accounting and reporting. Follow the rules and regulations made for a particular process in the business. Publish accounting policies.
    • - Negotiate service-level agreements (10815) - Agreeing upon terms and conditions. Negotiate an agreement between two or more parties, the customer and service providers. Specify scope, quality, and responsibilities.
    • - Establish accounting policies (10816) - Establishing policies and procedures to prepare financial statements, including methods, measurement systems, and procedures for providing disclosures.
    • - Publish accounting policies (20604) - Creating a written copy of agreed-upon procedures for preparing financial statements, and making them available to the public.
    • - Set and enforce approval limits (10817) - Implementing parameters for accounting. Apply set conditions for any approval process.
    • - Establish common financial systems (10818) - Establishing processes and procedures to exercise financial control and accountability. Record, verify, and report transactions that affect revenues, expenditures, assets, and liabilities.
  • 9.3.2 - Perform general accounting (10748) - Applying basic principles, concepts, and accounting practices in recording and preparing final accounts, and using accounting information in management.
    • - Maintain chart of accounts (10819) - Preparing trial balance account from general ledgers. List all accounts used in the general ledger. Alter accounts according to business requirements.
    • - Process journal entries (10820) - Making ledger and trial balance accounts from journal entries. This process requires the organization to record every transaction into accounts done by business. It is a base documents for preparing final accounts of company.
    • - Process allocations (10821) - Allocating funds across functions. Apportion funds in line with the budgets created. Formalize allocations in centralized internal records.
    • - Process period end adjustments (10822) - Updating journal entries to adjust the balance of income and expenses at the end of an accounting period.
    • - Post and reconcile intercompany transactions (10823) - Checking accounts separately for a parent and subsidiary company. Manage relationship between a parent company and subsidiaries. Document intercompany transactions in separate financial statements.
    • - Reconcile general ledger accounts (10824) - 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.
    • - Perform consolidations and process eliminations (10825) - Aggregating different processes in the business. Eliminate discontinued processes.
    • - Prepare trial balance (10826) - Balancing debit and credit balances of trial balance to preparing final accounts. Calculate the total debits and credits in company's accounts. Correspond the sum of all debits with the sum of all credits. Adjust entries as appropriate.
    • - Prepare and post management adjustments (10827) - Accounting for changes due to country-level policy changes. Record adjustments made by management in the accounts.
  • 9.3.3 - Perform fixed-asset accounting (10749) - Accounting for long-term and fixed assets. Record purchased, fixed assets that are not easily convertible into cash. Account for costs, useful life, resale value, depreciation, and amortization.
    • - Establish fixed-asset policies and procedures (10828) - Creating rules for fixed assets market valuation. Make rules and regulations for fixed assets regarding depreciation, provisions, resale, usage, etc.
    • - Maintain fixed-asset master data files (10829) - Keeping reports up-to-date regarding fixed assets. Create a fixed assets database detailing price, life cycle, depreciation rate, resale value, installation information, usage information, etc.
    • - Process and record fixed-asset additions and retires (10830) - Keeping a summary of sales and purchases of assets. Record any expenses made for new assets purchased and sales of any old assets during the fiscal year.
    • - Process and record fixed-asset adjustments, enhancements, revaluations, and transfers (10831) - Keeping a summary of expenses for installing and modifying assets. Record any expenses made for new assets purchased, any expenses incurred on improvements, the valuation of assets to reach current market price, and any transfer assets from one location to another during the fiscal year.
    • - Process and record fixed-asset maintenance and repair expenses (10832) - Maintaining a record of expenses necessitated for repairs and the preservation of assets. Administer and oversee the maintenance and repair of any fixed assets. Record all related transactions.
    • - Calculate and record depreciation expense (10833) - Carrying out accounting for depreciation over fixed assets. Compute the sums necessitated. Maintain a record of the cost value of fixed assets over their useful life in the book of accounts.
    • - Reconcile fixed-asset ledger (10834) - Balancing the ledger account balance for fixed assets. Correct errors in the books of fixed assets. Provide correct information in relevant accounts.
    • - Track fixed-assets including physical inventory (10835) - Checking and updating the record of all raw materials and fixed assets. Track all fixes asset. Maintain a record of all inventory items.
    • - Provide fixed-asset data to support tax, statutory, and regulatory reporting (10836) - Showing market value and related expenses on fixed assets data for taxation. Provide complete information recorded in the books of fixed assets about purchase price, depreciation, installation charges, resale market value etc. for tax and regulatory purposes.
  • 9.3.4 - Perform financial reporting (10750) - Reporting on the organization's financial status to stakeholders. Include balance sheets, income statements, cash flow statements, and statements of shareholders' equity.
    • - Prepare business unit financial statements (10837) - Making reports of subsidiaries units to show profits generated from them. Prepare financial statements (balance sheets, income statements, cash flow statements and statements of shareholders' equity) for a single unit of a business.
    • - Prepare consolidated financial statements (10838) - Making final accounts for all units of company together. Prepare combined financial statements of a parent company and its subsidiaries (i.e., separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses, and cash flows.
    • - Perform business unit reporting/review management reports (10839) - Making reports for units/subsidiaries to help management in decision making. Prepare financial statements (balance sheets, income statements, cash flow statements, and statements of shareholders' equity) for a single unit of a business. Break down profits and losses by function/unit, clients, products, and region.
    • - Perform consolidated reporting/review of cost management reports (10840) - Making reports for all units to help higher management in decision making. Prepare combined financial statements of a parent company and its all subsidiaries (separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses and cash flows, and also going through periodic reports which shows the actual and estimated costs and their variances.
    • - Prepare statements for board review (10841) - Preparing a draft of financial statements for the board to review before they are sent to the auditor.
    • - Produce quarterly/annual filings and shareholder reports (10842) - Making and presenting financial reports to stakeholders. Create annual and quarterly financial statements for reporting purposes. Prepare shareholder reports with details of the profit-and-loss account, balance sheet, and past year's business activities.
    • - Produce regulatory reports (10843) - Reporting raw or summary data for final accounts following rules and regulations.
    • - Perform legal and management consolidation (14074) - Carrying out activities associated with legal and management consolidation. Legal consolidation can include currency conversion, balance carry forward, and consolidation of journal entries. Management consolidation can include reporting on financials on a reporting cycle basis to gauge the performance of the organization.