This essay abc OF SPEND ANALYSIS has a total of 501 words and 3 pages.
As a business owner one should maintain accountability of their business?s finances and how they are spent. Rather accountability is maintained by one?s self or by someone else it is very important to maintain for the betterment of any business financial success. In this paper I will discuss the importance of data analysis skills when it comes to spend analysis, six sigma methodology and its usefulness in spend analysis, and in addition to accounting how marketing and human resource should be involved in spend analysis as well.
Possessing the skills needed to analyze and interpret data when dealing with spend analysis is very beneficial to any company. It allows you to make an accurate assessment on any monies spent, how, where, and why it was spent. In addition it allows you to make an accurate recommendation on where one needs to increase or decrease any monies being spent. ?For spend analysis to be effective, data files must be accurate, complete, and consistent.? (?Best Practices,? 2005). In addition one must be able to identify and make any corrections or assessments when data files are incorrect. Software applications can be programmed to automatically populate or produce certain data files based on the information a company is requiring. The process can be long and very tedious, depending on the size of the company and the company?s business transactions.
Adopting the Six sigma methodology can be very beneficial. First, six sigma will streamlines a business processes to make them more effective. Secondly, six sigma can also identify problems within the company?s business processes and recommend improvements. Third, six sigma methodology will increase customer satisfaction and help a company reach its goals.
It is very important to get other functional areas of the company involved in the spend analysis especially finance because it not only affects finance but it affects marketing and manufacturing. Finance is most important because this is where all funds originate and without funding how can anything be able to operate? Marketing should be involved because here is where the outreach to the consumer or customer is made. Human resource is where a company?s business is made whole through the staffing processing. Based on the finance and or projects and the company?s mission human resource can determine how many employees they can afford to have on the company?s payroll.
To sum it all up, ?spend analysis is the process of determining what is being spent, with whom and for what.? (Hingorani , 2010 p. 56). If a company can maintain an accurate accountability of their funding and continuously improve upon their process utilizing six sigma methodology they will only increase in their business profits, customers and overall growth of their company.
General, T. A. (2011, May 12). Texas Office of the Attorney General. Retrieved November 28, 2011, from Texas Tenants Rights: https://www.oag.state.tx.us/consumer/index.shtml
Liuzzo, A. L. (2010). Essentials of Business Law. New York, NY: McGraw-Hill.
Topics Related to abc OF SPEND ANALYSIS
Process management, Quality management, Six Sigma, Marketing, Business process, Finance, Design for Six Sigma, Marketing plan, sigma methodology, accurate recommendation, six sigma, incorrect software, accurate assessment, customer satisfaction, business transactions, financial success, functional areas, betterment, monies, business owner, software applications, human resource, best practices, accountability, improvements, accounting, marketing
Essays Related to abc OF SPEND ANALYSIS