Incentives are basically 'recognition'.
Sorry, basing incentives on collections is wrong.
Do you think the person doing the reconciliation is not doing any work worth recognition? In fact he is the one who is most valuable for you. He detects the mistakes made by the other guys and corrects them for your benefit!
If you think all three are sincere, hard working employees then give them incentive @ of 7 or 15 days pay that they earn.
2006-08-04 13:56:37
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answer #1
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answered by worldsbestca 3
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Effective incentive plans need to be measurable. For your A/P person base it on volume of A/P processed, checks cut, etc. Accuracy of postings (mistakes) and timeliness of the processing (i.e how fast and accurate the 1099's get out, etc.)
For your degreed accountant, you will want it based on the same measurable criteria.. primarily on accuracy and speed. How fast are all the reconcilations completed each month? Are they correct? subject to audit adjustments?
Only you can come up with the proper criteria, but I think those are good starters.
Another suggestion for your A/R person is not only just collections, but was is the average DSO (how fast is everyone paying). Also, how fast are the invoices getting out the door?
Items like that which can be measured /objective are the best for an incentive plan
2006-08-04 21:42:28
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answer #2
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answered by an_man 1
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I've worked in accounting and finance for a couple of years now and i've found a couple of different incentives. The problem with A/P is they are dependent upon so many other areas for input. Accuracy, of A/P charges is one measure since errors can drive additional JE's.
Staff accountants can have quite a few interesting measures.
1.) The number of manual JE lines processed, Reduction yields a more consistent close process. Reduce reclasses.
2.) The number of hours/days in the close process. Close the books faster.
2006-08-07 21:10:26
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answer #3
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answered by Celiff 2
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For the A/P person, how about the number of invoices processed per week?
Accountant, give a straight 5-10% annually and the A/R person, you can base his/her bonus on bad debt collection.
2006-08-11 21:55:05
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answer #4
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answered by Super Mom 4
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create reachable goals and give them exciting incentives and useable incentives. such as trips and passes to shows. Find their interest out and reward them for instance their favorite artist is coming to town get them in that show with the best seats
2006-08-12 14:29:35
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answer #5
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answered by collbreeze4 1
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follow the yahoo answer point reward system. if they accumulate points for no mistakes, give some incentive like lunch or a trip, if they screw up, penalties like having them redo the accounts at their private time
2006-08-12 01:26:28
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answer #6
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answered by Baby_Apocalypse 4
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Accounting is my weak spot.
2006-08-10 07:16:20
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answer #7
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answered by Gyan 1
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