KPIs

Accrual estimation accuracy

How far accrual estimates diverge from the actual amounts that replace them.

Formula

Mean absolute (|actual − accrued| ÷ accrued) × 100 across reversed accruals

Illustrative target

Within 5% for recurring accruals

KPI cautions1
  • Averaging absolute deviations hides systematic bias: consistent under-accrual and consistent over-accrual can produce the same average error.
KPI lifecycle stages1