The Impact of Six Sigma Methodology in Accounting & Finance Process
Brought into existence by Motorola in 1986, the Six Sigma technique or methodology finds its applauded application in various manufacturing and business processes worldwide today. It is considered to be one of the key resources to make accounting process outputs better and quality by identifying and removing defects. Since this technique encompasses a variety of quality management methodologies, it benefits a company create a large talent pool so as to increase process improvement for accounting and finance work.
Six Sigma Implementation –
The accounting process is said to be one of the most intricate and esoteric processes to deal with. That's why an expert on the subject matter is required for a startup company to handle such esoteric process. Moreover, startup companies oftentimes experience abstruse issues in relation with systematic handling of account related chores. Also, such companies have rudimentary accounting/bookkeeping process beset with disorganized and erroneous process solution that eventually yields operational deformity in accounting works.
Given that accounting is one of the most imperative parts of a company, the actualization of the time-consuming accounting process faster and in the best satisfactory way conceivable has its own significance. And, Six Sigma is just the name of the means to evince satisfactory solutions in accounting and finance process.
Six Sigma in Accounting & Finance Processes –
The Six Sigma implementation in startup's accounting and finance process yields one of the key benefits – a well managed cash flow advantage. Six Sigma involves numerous tools and techniques to streamline and standardize any seemingly complicated accounting works in a company.
In the light of finance and accounting that is undoubtedly a team work process, the implementation of Six Sigma methodology is to ensure that the end result of any crucial and time-consuming accounting processes is satisfactory and in compliance with accounting norms.
The introduction of Six Sigma to accounting function has been effective in many ways. For example, this technique has contributed reduction in cycle time management and invoice processing as well as it has optimized the cash flow in accounting process.
Most healthcare insurance providers in the world that used Six Sigma strategy experienced great performance result in systematically handling the core accounting process.
It has been ascertained that post Six Sigma implementation almost zeroed the erroneous rate in the billing process with faster turnaround time (6 days of billing cycle time was reduced to 3 days). Thus, the implementation of Six Sigma reduces manual workflow and improves accounting process accuracy. Also, it has improved customer satisfaction level substantially.
In addition, the variability of cycle time management, reduction of erroneous rates in billing process and employment satisfaction evinced in those companies which applied Six Sigma technique. Moreover, this technique plays a major role in cycle time reduction for financial reporting process as well as the reduction of the time associated with closing books.
Apart from that it decreases changeability in the process of financial reporting, improves the value of shareholders and makes financial process accurate.
Conclusion –
There is no denying the fact that financial performance bears positive impact by the application of Six Sigma methodology. It is one of the surefire ways to streamline finance processing activities. It helps an industry achieve maximum turnaround time to accomplish operational excellence in its finance and accounting service.
Six Sigma Implementation –
The accounting process is said to be one of the most intricate and esoteric processes to deal with. That's why an expert on the subject matter is required for a startup company to handle such esoteric process. Moreover, startup companies oftentimes experience abstruse issues in relation with systematic handling of account related chores. Also, such companies have rudimentary accounting/bookkeeping process beset with disorganized and erroneous process solution that eventually yields operational deformity in accounting works.
Given that accounting is one of the most imperative parts of a company, the actualization of the time-consuming accounting process faster and in the best satisfactory way conceivable has its own significance. And, Six Sigma is just the name of the means to evince satisfactory solutions in accounting and finance process.
Six Sigma in Accounting & Finance Processes –
The Six Sigma implementation in startup's accounting and finance process yields one of the key benefits – a well managed cash flow advantage. Six Sigma involves numerous tools and techniques to streamline and standardize any seemingly complicated accounting works in a company.
In the light of finance and accounting that is undoubtedly a team work process, the implementation of Six Sigma methodology is to ensure that the end result of any crucial and time-consuming accounting processes is satisfactory and in compliance with accounting norms.
The introduction of Six Sigma to accounting function has been effective in many ways. For example, this technique has contributed reduction in cycle time management and invoice processing as well as it has optimized the cash flow in accounting process.
Most healthcare insurance providers in the world that used Six Sigma strategy experienced great performance result in systematically handling the core accounting process.
It has been ascertained that post Six Sigma implementation almost zeroed the erroneous rate in the billing process with faster turnaround time (6 days of billing cycle time was reduced to 3 days). Thus, the implementation of Six Sigma reduces manual workflow and improves accounting process accuracy. Also, it has improved customer satisfaction level substantially.
In addition, the variability of cycle time management, reduction of erroneous rates in billing process and employment satisfaction evinced in those companies which applied Six Sigma technique. Moreover, this technique plays a major role in cycle time reduction for financial reporting process as well as the reduction of the time associated with closing books.
Apart from that it decreases changeability in the process of financial reporting, improves the value of shareholders and makes financial process accurate.
Conclusion –
There is no denying the fact that financial performance bears positive impact by the application of Six Sigma methodology. It is one of the surefire ways to streamline finance processing activities. It helps an industry achieve maximum turnaround time to accomplish operational excellence in its finance and accounting service.
