Manager Finance And Accounts KRA/KPI

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

1. Financial Planning and Budgeting

KRA: Develop and implement financial plans and budgets to ensure effective resource allocation.

Short Description: Strategic financial planning and budget management.

• 1. Annual budget variance not to exceed +/- 5%.
• 2. Achieve 100% budget utilization across departments.
• 3. Increase ROI by 10% through budget optimization.
• 4. Ensure compliance with budget timelines and reporting requirements.

2. Financial Reporting and Analysis

KRA: Generate accurate financial reports and conduct in-depth analysis for informed decision-making.

Short Description: Comprehensive financial reporting and analysis.

• 1. Timely submission of monthly financial reports.
• 2. Maintain a 95% accuracy rate in financial analysis.
• 3. Identify cost-saving opportunities through financial data.
• 4. Present actionable insights to senior management based on financial analysis.

3. Cash Flow Management

KRA: Monitor and optimize cash flow to ensure liquidity and financial stability.

Short Description: Efficient cash flow management.

• 1. Maintain a minimum cash reserve of 3 months’ operating expenses.
• 2. Reduce outstanding receivables by 15%.
• 3. Implement cash flow forecasting to minimize cash gaps.
• 4. Negotiate favorable payment terms with vendors to improve cash position.

4. Internal Controls and Compliance

KRA: Establish robust internal controls and ensure compliance with financial regulations.

Short Description: Strengthened internal controls and regulatory compliance.

• 1. Conduct quarterly internal audits with zero major findings.
• 2. Achieve 100% compliance with GAAP and local regulations.
• 3. Implement fraud prevention measures with zero financial discrepancies.
• 4. Provide timely responses to audit queries and recommendations.

5. Strategic Financial Advice

KRA: Provide strategic financial advice to support business growth and profitability.

Short Description: Proactive financial advisory services.

• 1. Increase profitability by 10% through financial recommendations.
• 2. Develop financial strategies aligned with organizational goals.
• 3. Identify investment opportunities for revenue diversification.
• 4. Monitor and mitigate financial risks through strategic planning.

Real-Time Example of KRA & KPI

Managing Working Capital Efficiency

KRA: By optimizing working capital management, the company reduced its cash conversion cycle by 15 days.

• KPI 1: Decrease in Days Sales Outstanding (DSO) from 45 to 30 days.
• KPI 2: Increase in Inventory Turnover Ratio from 5 to 7.
• KPI 3: Reduction in Days Payable Outstanding (DPO) from 60 to 45 days.
• KPI 4: Improvement in Cash Conversion Cycle from 90 to 75 days.

This initiative led to improved cash flow, reduced borrowing costs, and enhanced financial stability for the organization.

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 Manager Finance And Accounts.

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