A Two-Handed Process Chart is a powerful tool used in various fields, including accounting and finance, to analyze, document, and improve workflows. In this guide, we will explain the concept of a Two-Handed Process Chart, discuss its significance, and provide an example to help learners in accounting and finance understand how this tool can streamline processes and enhance efficiency.
Understanding the Two-Handed Process Chart:
A Two-Handed Process Chart, also known as a Two-Handed Flowchart or a Two-Handed Chart, is a visual representation of a workflow or a sequence of tasks. It is called “Two-Handed” because it typically shows two columns or lanes, one for each person or entity involved in a process, making it a valuable tool for illustrating interactions and dependencies.
Key Points to Grasp:
- Visual Representation: A Two-Handed Process Chart uses symbols and graphical elements to represent different tasks, decisions, and actions in a workflow. It offers a clear and intuitive way to understand complex processes.
- Two Columns: The chart consists of two columns or lanes, often labeled as “Person A” and “Person B,” “Entity 1” and “Entity 2,” or similar designations. These columns represent the parties or entities involved in the process.
- Flow of Tasks: Arrows and connecting lines show the flow of tasks from one column to the other, indicating the sequence and direction of actions. This visual depiction makes it easy to identify handoffs and interactions.
How the Two-Handed Process Chart Works:
Let’s delve into how a Two-Handed Process Chart operates with a practical example from an accounting department:
Example: Consider an organization’s accounting department responsible for processing invoices. The process involves two primary roles: the Accounts Payable Clerk (Person A) and the Finance Manager (Person B).
- Start: The process begins when the Accounts Payable Clerk receives an invoice from a supplier. In the Two-Handed Process Chart, this is represented as a task in Person A’s column.
- Action: Person A checks the invoice for accuracy, matches it with the purchase order, and enters the invoice details into the accounting system.
- Handoff: Once the initial processing is complete, the task is handed off to Person B (Finance Manager) for approval.
- Approval: Person B reviews the invoice, ensuring it complies with company policies and budgets. If all is in order, the invoice is approved for payment.
- Payment: Once approved, the task is handed back to Person A for payment processing. Person A initiates the payment to the supplier.
- End: The process concludes with the payment being made to the supplier.
In this example, the Two-Handed Process Chart would consist of two columns, one for Person A (Accounts Payable Clerk) and one for Person B (Finance Manager), with arrows connecting the tasks in a logical sequence.
Significance in Accounting and Finance:
The Two-Handed Process Chart holds significant importance in accounting and finance:
- Workflow Analysis: It is a valuable tool for analyzing complex financial processes, such as accounts payable, financial audits, or budget approvals. The visual representation makes it easier to identify bottlenecks and areas for improvement.
- Communication: The chart enhances communication within a team or department. It clarifies roles and responsibilities, ensuring that everyone understands their part in the process.
- Process Optimization: By visualizing workflows, accounting and finance professionals can identify inefficiencies and redundancies, leading to process improvements and cost savings.
Real-World Example: Procurement Process
In a large corporation, the procurement process can be quite intricate. It typically involves interactions between the purchasing department, finance department, and suppliers. Using a Two-Handed Process Chart, the company can visualize and streamline the procurement workflow. The “Person A” lane may represent the purchasing department, while the “Person B” lane could represent the finance department. The chart would show the sequence of tasks, approvals, and interactions between the two departments, leading to more efficient procurement operations.
Conclusion:
A Two-Handed Process Chart is a powerful tool for visualizing and improving workflows in accounting and finance. Its ability to represent complex processes in a clear, easy-to-understand format makes it an essential resource for process analysis, communication, and optimization. For learners in accounting and finance, mastering the use of this tool can lead to more efficient and effective financial operations, benefiting both organizations and their stakeholders.