How to check branch sales performance?

Keyword: assessment branch sales performance management, performance management--on accrual basis

I and a own business do CEOs of thousands of stocks, chat, he referred to himself in the business management of a distress, is how the examination branch sales performance. I think the problem is very simple, simply said, "the easiest way is to get income accounting account and net profit for the underlying data to check my balance. "He answered," my company is doing so. The result is a branch manager, to each of the last two months, really a bit like in the movies ' sinisterlandlord Huang Shiren ', urging customers to pay for it everywhere, spell a life to the payee, for the purpose of revenue do. No one like the beginning of the year, efforts to meet customer and signing orders and shipping. So get down, sometimes in the fourth quarter revenues up 60% of annual income. However, this figure of each of the first quarter shipments and revenue are very light. ”

I am confused and asked him, "do your income is not in accordance with the accrual accounting?"

He asked me, "what is accrual?"

…

In such a name is called the management's magazine explains "accrual accounting theory of" the basic concept is to risk being criticized as a "just earn fee" risks. However, when I asked a few years those who engaged in enterprise management and enterprise management perspective a bit "accrual" later, I feel bound to our enterprise managers to do some basic knowledge of accounting.

In accordance with international financial reporting standards of the authoritative interpretation, accrual is "in the transactions and other matters as they occur (and not in receipt of or payment of cash or cash equivalents) to confirm that their impact, and they are credited with its associated period accounting records and financial statements for the period in which to report." Chinese accounting standards, but also according to this concept to operation. China's tax system, in most of the time it is in accordance with the accounting concept. However, the tax authorities in the implementation of practical operation level, because of the tax administration staff in the number and capacity constraints, and formulating provisions when the idea is still some distance away.

For example to illustrate this concept. Suppose a company is the production and sales of drainage pipe seals. Sales in the month of October 2004 and an engineering company signed a sales contract. According to the contract, the goods to be shipped in early December 2004, in order to meet the project company in December of engineering construction. The purchase price will be paid in January 2005. This company is in full conformity with contract requirements to perform the contract, and in 2005 received the payment. Then, in the amount of sales revenue, in accordance with the requirements of accrual, you should be doing is December 2004 sales revenue, rather than in January 2005 or October 2004 sales revenue.

I went to the enterprise, often similar problems resulting from the digital difference. Like the above example of the sales revenue, if I asked the Sales Department Manager 2004 sales figures, he is likely to do business as 2004 sales figures, because in his view, the contract down, their sales of hard work there as a result, sales in most of the work is completed, this amount should be doing them in October 2004. But if I ask the enterprise General Manager, he is likely to be doing business in 2005, sales figures, because in his view, the amount of the purchase price before recovery, all have done may bring to the enterprise. Only received, is the work done.