Accounting and consolidating entry
It’s just business as usual, and the losses aren’t limited to the finance function.Most finance operations serve as “measurement factories” for the entire business.Direct and Measurable Losses The first loss from continuous risks manifests itself as unnecessary work activity performed by knowledge workers. Think of the arcane complexity in the chart of accounts typical of most finance departments.
The unnerving truth is that your finance department is probably managed less rigorously than your company’s office supplies.
Continuous risks, on the other hand, aren’t distinct events.
They aren’t costly to the status quo, especially when existing operations are riddled with expensive built-in errors, inefficiencies, and biases.
, once said about the movie industry: “Nobody knows anything.
Not one person in the entire motion picture field knows for a certainty what’s going to work.Therefore, losses from continuous risks degrade productivity measurement throughout every area of the company.