Accounting Question

Consider your current company, or a company that you have previously worked for, and describe and critique the performance reporting that is used by that organization. If you do not have relevant work experience, use the GCU Library to locate an article on variance analysis or performance reports and compare the process recommended by the article to that of the textbook. Your initial post should be approximately 250 words. To participate in follow up discussion, ask questions and post comments regarding classmates’ posts, or respond to follow-up questions posted by the instructor.Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.Submitted on:Feb 29, 2024, 6:28 PMVIEW DQ RESPONSEKBKathryn BuckleyMar 1, 2024, 2:30 PMUnreadGood afternoon, As the Director of Communications for our pest control company, I’ve observed firsthand the intricacies of our performance reporting system. We’ve been diligent in tracking operational metrics such as service completion rates, customer satisfaction scores, and incident reports concerning pest recurrence. These metrics serve as the backbone of our commitment to maintaining high service standards and ensuring customer loyalty. However, I’ve identified a significant gap in our approach, particularly concerning variance analysis, when juxtaposed with the methodologies recommended in scholarly texts and industry best practices. Our current reporting system, while robust in recording descriptive statistics, falls short in conducting a comprehensive variance analysis. This is a crucial oversight, as variance analysis is instrumental in comparing actual performance against planned or expected outcomes. Such an analysis not only highlights deviations but also categorizes them into favorable or unfavorable variances, thereby shedding light on areas requiring immediate management intervention or strategic realignment (Hansen, Mowen, & Guan, 2009).In contrast to our somewhat superficial approach, the academic literature advocates for a more analytical and integrative method of performance reporting. Specifically, it recommends the blending of financial and non-financial data to provide a more holistic view of an organization’s performance (Horngren, Datar, & Rajan, 2012). This encompasses a thorough variance analysis across operational metrics and financial indicators such as revenue, costs, and profit margins. The rationale behind this comprehensive approach is that understanding the root causes of variances equips management with the insights needed for better strategic planning, resource allocation, and risk management (Horngren et al., 2012). Reflecting on these insights, I recognize that our company would significantly benefit from adopting the analytical techniques outlined in the literature. Enhancing our reporting practices to include a more detailed variance analysis would not only improve our strategic decision-making capabilities but also bolster our operational efficiency and financial health. Aligning our performance reporting with these best practices would undeniably provide us with a competitive advantage in the pest control industry.Thank you,KathrynReferencesHansen, D. R., Mowen, M. M., & Guan, L. (2009). Cost Management: Accounting and Control. Cengage Learning.Horngren, C. T., Datar, S. M., & Rajan, M. V. (2012). Cost Accounting: A Managerial Emphasis. Prentice Hall.