In this episode, we discuss how run charts can be used within an accounting operation, as well as the different types of metrics relating to the return on investment. Key points relating to accounting run charts are:
Run charts can be used to justify changes in employee headcount.
Run charts can also be used to monitor employee performance, especially when processing volumes per person decline.
Run charts can be useful for deciding whether to use temps or hire full-time workers, depending on the transaction pattern observed over time.
Run charts can be used to monitor the seasonal elements of transaction volumes.
Key points relating to return on investment metrics are:
ROI metrics are needed for the analysis of investments.
Return on assets; includes all assets, to give a better picture of the total investment in assets.
Return on operating assets; only includes those assets actively being used to generate revenue.
Equity growth rate; shows how the equity balance is being impacted by inflows and outflows.