Research On Performance Evaluation Index System Of X Accounting Firm Based On BSC And KPI

With the development of market economy,performance management,as an advanced mode of enterprise management,has become a key component for enterprises to improve their core competitiveness.Furthermore,it directly matters if enterprises can attain their established strategic goals during their development as a essential factor of enterprise management.To achieve their expected business objectives,they shall establish a scientific and effective performance evaluation system to ensure favorable internal management,in order to support further development of external businesses.Nowadays,accounting firms are gradually expanding all over China with the fast development of economy.However,plenty of them still adopt traditional performance evaluation methods,as a result of which it has become impossible for their performance management to keep up with the pace of their expansion.In China,problems such as unclear performance indicators,inconsistencies between performance management and strategic objectives and inappropriate application of performance appraisal results more or less exist small,medium-sized and large accounting firms.As a consequence,roles of performance evaluation haven’t been given into full play.Since great challenges are posed to their development,accounting firms need to establish a feasible performance evaluation index system to solve aforementioned problems suitable for their expansion.In this paper,performance evaluation index system of X Accounting Firm is investigated.In light of current situation and problems of this system,it is proposed that BSC shall be integrated with KPI to give play to both of their strengths.Subsequently,strategic objectives of the accounting firm are decomposed from the perspective of financial affairs,customers,internal procedures,learning and growth.Meanwhile,key success factors are determined and performance evaluation indicators at all levels are identified for the Accounting firm,so as to construct an integrated BSC and KPI based performance evaluation system,which may bring the roles of performance evaluation in internal management of the accounting firm into full play,effectively increase employees’ satisfaction at work,strengthen their enthusiasm about work,solve problems with the performance management system and improve its performance management.