Accounting Benchmarking: What Is It And What Are Its Advantages?

Accounting & Bookkeeping Benchmarking

Accounting Benchmarking? You can confess: when you hear the testimony of some successful businessman, he is very curious to know exactly what he did to get where he arrived, right? And when does this manager act in a competing company? At these times, curiosity reaches an unprecedented level. Know, however, that you are not alone. Many other successful entrepreneurs would do their utmost to discover some of the competition’s secrets, and for that, they are betting on a strategy that can make them a little bit safer.

Accounting BenchmarkingAccounting Benchmarking

This strategy is benchmarking. But what is this? Actually, accounting benchmarking is a process of comparison, in which we will verify the practices adopted by the market so that, in this way, we can change our own strategies and beliefs. It is a valuable management tool for any organization and it is very common to see large companies apply this strategy on a daily basis.

In this post we’ll talk a little bit more about benchmarking and its connection with accounting! Check out:

Benchmarking: operation and benefits

Contrary to what it may seem at first, benchmarking is not espionage. Of course, we often use whatever information we get from our competitors in our favor, but the truth is that benchmarking is much more than that.

Usually, to study the competition we make use of data disclosed by them, such as time of service, delivery, products offered, monthly and annual profitability (when it is disclosed), among many others. All this information is cleared and compared with the data obtained internally. As we look at the two scenarios, we can find out a bit more about our own business and how it stands before the market .

However, it is important to remember that there are cases where benchmarking is done collaboratively between two or more organizations. This is the case of companies that hold congresses, events or training together. In other words, any alternative is valid to learn more with others, the important thing is to not forget that accounting benchmarking is an ongoing process of learning.

Phases of Accounting BenchmarkingPhases of Accounting Benchmarking

For your accounting office to be able to perform an effective benchmarking, it must follow some phases, from planning to performing actions that effectively bring results. You can follow some steps, as we will see below:

Planning

At this stage, we will define what should be changed and what information we should collect. For example, we can implement marketing strategies that are more successful, searching the market for the initiatives that really brought the results we expected. The idea, therefore, is to know what needs to be improved or implemented.

Data collect

Now that we know exactly what we want to improve, the time has come to seek information. In the era of social networks , it is very easy to get public information, especially when we refer to marketing actions, promotions, and other strategies. In addition, attending accounting events, such as conferences and seminars, is also a great way to get external information.

Data analysis

We will now take stock of the information collected and the reality of the office. What are we doing and what is the market doing? Which option is the most feasible for my office? At that time, we will compare the data obtained with the internal reality! It is benchmarking itself, since this tactic is nothing more than a comparative analysis.

Improvement actions

Anyway, everything that has been defined as a priority in the planning stage can now be solved. We will define exactly what measures will be needed to improve what we needed to improve!

Accounting & Bookkeeping BenchmarkingAccounting & Bookkeeping Benchmarking

Ok, how can this all be valuable to accounting firms ? Well, first of all, it is important to remember that accounting is constantly changing, from legislation to the technologies used to calculate the financial statements.

If we combine all these factors and still consider the constant movement of the international accounting councils in order to standardize the area worldwide, we can conclude that having a process like the accounting benchmarking certainly can help a lot in the time to adapt.

Many accounting firms are already benchmarking through congresses and other events in the area, which is very common. This is a way to find out what other organizations have done to get around the many fiscal problems in Brazil, for example, and it can be the fundamental start for you to completely change the paradigms of your service!

And then? Ready to take advantage of the accounting benchmarking and improve the services provided in your office? Continue on our blog and stay on top of other tips!

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