ICAS Cost Benefit Analysid

supersnoo
supersnoo Registered Posts: 4 New contributor 🐸
Hello

I am trying to complete my project and am so stuck on how the cost benefit analysis should be presented. Does anyone have any tips

Thank you

Comments

  • Malcolm Green
    Malcolm Green Registered Posts: 105 🎆 🐘 🎆
    For your CBA you will need to look at what recommendations you are making and identify where possible all the costs involved to implement the recommendation.

    This will allow you to show the £ cost to the business and the value of these benefits to the business.

    Costs £

    For example the cost of purchasing the accountancy system the type of package that would be required ie number of users and the cost of any additional training that will be required and how this will be provided in-house or from an outside training provider and also the cost to the business for time lost during training.

    Your background research should help you with most of the data you will need for this, however if you are having problems guesstimates and assumptions are acceptable if hard evidence is not available to support this but these must be seen as realistic costs.

    Benefits £

    You will need to look at all the benefits to the business from these actions, which could be quicker completion of work fewer mistakes and access to better management information.

    Again with some of these points you will be able to allocate a specific £ cost or you will need to make some realistic assumptions of what this will mean such as XX transactions would now be completed in an hour helping to save overtime payments of £X or an improvement of X% in processing efficiency across a department worth £X based on a team of X staff pa also fewer mistakes should now be made saving the business £X in time lost in duplication of work correcting mistakes or compensation payments made etc.

    You will also come across some benefits where you cannot easily put a financial value on them but you should still include all of these to help make the overall case.

    You may also like to do a quick search on Google for CBA as well

    I trust you will find this information of assistance and good luck with the completion of your ICAS project
  • Makkusu
    Makkusu Registered Posts: 94 💫 🐯 💫
    I sourced average costs of of the supposed recommendations, listed it in a simple table, I estimated salary increases and totaled it up at the bottom. All benefits I listed were non-monetary and my tutor said all was good. If you are doing a case study, scan through each page looking for pieces of information to base the benefits on e.g. salary. Mine had none so yay for me.
  • welshwizard
    welshwizard Registered Posts: 465
    Try this method:

    Take each recommendation and put it into a table.

    Then place against the recommendation the cost of implementing it and the associated benefits

    So, for example

    You may recommend (in column 1)

    Buy a new dog

    Cost (in column 2)

    Monetary:

    Dog £200
    Training costs £100
    Food £1 per day
    Vet's fees £50 p/a
    Kennels to cover holidays £100 per week

    Non-monetary

    Time needed to house train dog
    Time to walk dog
    Reluctance of son/daughter to walk dog (maybe training needed here too?)


    Benefits (Column 3):

    Monetary:

    Saves £10 on reduced damage to property now we have a guard dog

    Non- monetary

    Companionship
    Guard for premises when family are out during the day

    Hopefully, you can see how this could relate to the accounting system recommendations....

    Good luck
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