P&G: The Artistic Accounting Attributes

Topic: Accounting
Words: 304 Pages: 1

At the start of the tech boom, in the early 2010s, with the advent of the smartphone, apps, and other technical capabilities associated with the development of the B2B software, P&G did not immediately respond adequately to the widespread digitalization. The technology utilization in doing business was fully ensured only from the beginning of 2015, which led to losses associated with the lost opportunity to save on investments in new product features due to insufficient demand estimation (“Procter & Gamble,” 2018).

In the future, technology use made it possible to produce merchandising more consciously and coordinate supply volumes following the potential demand for the company’s products, which was distributed unevenly depending on the neighborhood. Digitalization and the creation of the developed data-management and data-government ecosystem have fundamentally changed the image of P&G. Working with technology has also defined the company’s presence among customers who prefer smart services and products, linking some products with smartphone applications.

Four artistic accounting attributes include accuracy, relevance, timeliness, and repeatability. Accuracy means that information must be honest, accurate, and reflect the actual state of affairs. In addition, its preparation should not be overly time-consuming and expensive. In P&G, accurate reporting of revenue by sales region could help managers determine the following strategy (“Procter & Gamble,” 2018). Relevance means readability or explanation of the numbers so that the reader understands the meaning of the data.

In P&G, the description of the revenue volume by region implemented the element of relevance. Timeliness means reporting is done on time to remain relevant and helpful to users. For example, a late report is useless to managers because all the necessary decisions have already been made. Finally, repeatability is about following cycles, and monthly reports are a good example. As a result, managers can compare reporting data over specific periods to make strategic decisions.

Reference

Procter & Gamble is bigger than you know. (2018). [Video file]. Web.