Manager Finance And Accounts KRA/KPI

Key Responsibility Areas (KRA) & Key Performance Indicators (KPI) for Finance And Accounts Manager

1. Financial Reporting and Analysis

KRA: Ensuring accurate financial reporting and analysis for informed decision-making.

Short Description: Responsible for preparing financial statements and providing insights.

• Accuracy of financial reports
• Timeliness of financial reporting
• Financial variance analysis
• Adherence to regulatory requirements

2. Budget Planning and Control

KRA: Developing and managing budgets to control costs and optimize resource allocation.

Short Description: Overseeing budget creation and monitoring expenditure.

• Budget variance analysis
• Cost-saving initiatives implemented
• Accuracy of budget forecasts
• Budget compliance

3. Cash Flow Management

KRA: Ensuring efficient cash flow management to meet financial obligations.

Short Description: Monitoring cash inflows and outflows for liquidity management.

• Days Sales Outstanding (DSO)
• Cash conversion cycle
• Working capital ratio
• Cash flow forecasting accuracy

4. Financial Risk Assessment and Mitigation

KRA: Identifying and mitigating financial risks to safeguard company assets.

Short Description: Assessing risks and implementing strategies to minimize impact.

• Risk assessment reports generated
• Implementation of risk mitigation strategies
• Reduction in financial losses due to risks
• Regulatory compliance maintained

5. Audit Coordination

KRA: Coordinating internal and external audits for transparency and compliance.

Short Description: Facilitating audit processes and ensuring timely completion.

• Audit findings resolution time
• Audit report accuracy
• Compliance with audit recommendations
• Audit completion within deadlines

6. Financial Systems Enhancement

KRA: Improving financial systems and processes for efficiency and accuracy.

Short Description: Upgrading systems to streamline financial operations.

• System downtime reduction
• User training completion rates
• Enhancement of reporting tools
• Process automation implementation

7. Compliance Management

KRA: Ensuring adherence to financial regulations and standards.

Short Description: Monitoring compliance requirements and implementing controls.

• Number of compliance audits passed
• Regulatory fines incurred
• Policy violation incidents
• Training completion on compliance

8. Cost Analysis and Optimization

KRA: Analyzing costs and identifying opportunities for cost-saving measures.

Short Description: Evaluating expenditures and optimizing resource allocation.

• Cost reduction initiatives implemented
• Variance analysis on cost savings
• Cost per unit analysis
• Identification of cost drivers

9. Financial Forecasting

KRA: Developing accurate financial forecasts for planning and decision-making.

Short Description: Predicting future financial outcomes based on data analysis.

• Forecast accuracy percentage
• Variance analysis on forecasts
• Forecast revision frequency
• Use of forecasting models

10. Stakeholder Relationship Management

KRA: Building and maintaining relationships with stakeholders for financial transparency.

Short Description: Engaging with stakeholders to ensure alignment on financial goals.

• Stakeholder satisfaction surveys
• Timely communication with stakeholders
• Resolution of stakeholder concerns
• Feedback incorporation in financial strategies

Real-Time Example of KRA & KPI

Finance And Accounts Manager in a Manufacturing Company

KRA: Implementing cost-saving measures to reduce manufacturing costs.

• KPI 1: Percentage reduction in direct material costs.
• KPI 2: Increase in production efficiency leading to cost savings.
• KPI 3: Reduction in overhead costs through process improvements.
• KPI 4: Improvement in profit margins due to cost optimization.

These KPIs resulted in a 15% reduction in overall manufacturing costs and a 10% increase in profitability within the first quarter.

Key Takeaways

• KRA defines what needs to be done, whereas KPI measures how well it is done.
• KPIs should always be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
• Regular tracking and adjustments ensure success in Finance And Accounts Manager.