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Lean Accounting holds the keys!

Are You?

• about to start producing budgets for next year when you’re not sure what you’ll sell next month?
• working on (at least) your second version of this year’s budget?
• thinking about imposing a set % budget reduction; the same for every department? Haven’t some departments have already improved their costs?
• grappling with budgets for this year which bear no relation to the costs you are incurring?
• Wishing you had a flexible accounting & reporting system which could cope, quickly and accurately, with the business and environmental changes you are dealing with?

Do you want

• departments to realise they needed to reduce costs before you had to intervene?
• targets to become the minimum levels of performance?
• compile reports that many read, understand and take action from?
• to save time compiling reports?
• to understand how and where costs can be challenged and reduced?
• to be the key driver in strategic decision making in your organisation?
• the organisation to understand how it creates value for the customer?
• the organisation to understand which customers destroy value for you?

Do you suffer from

• “Use it or lose it” mentality, departments spend their budgets to avoid losing it next time?
• departments asking for more than they need in the expectation it will be cut during budget negotiations?
• late reports? working day 7/8/9//10+? of the next month
• monthly quizzes as to why the variances changed last month?
• endless matching of accruals to allocations because departments didn’t accurately forecast their monthly spends?
• The accounting function being seen as the gatekeeper, rather than the enabler of new business development.
• endless challenges to the allocation of overheads?*
• inaccurate cost recording?*

If you want to start removing the challenges listed above then

For a FREE CONSULTATION and LEAN ACCOUNTING AUDIT!!

contact our

Lean Accounting expert, Neil Harvey on 

07931 529300

he WILL be able to help you and can be reached via info@resqmr.co.uk

If you want to go straight to the papers on Lean Accounting then, click here

as we said

"Lean Accounting" holds the keys!

But first we'd like you to imagine a little scenario;

You've just been appointed the first management accountant at the DEF company in it's brand new facilities. They want to YOU to design their accounting and reporting system to keep the costs under control and report on progress. You spend the next two weeks working, refining and polishing this system and then deliver it to the owners.

They are in awe! how simple, you decided to allocate the direct labour and the material costs to each product made and then you also allocate the other overhead costs as a % of the direct labour used in each product and you'll monitor this by producing a variance report.

Two months later the operational area is struggling and the owners decide to bring in a professional operations manager. He works hard with the ops team to meet the owners KPIs and they then manage to reduce the time taken to manufacture each product by over 25% and also reduce the stocks they hold, both raw materials and finished goods, by 50%. Additionally they only make products they have orders for.

All of a sudden the reports look wrong! Your system doesn’t reflect the success the operations team are having in performance. The reports are showing that operations has made a loss against their budget, how could this happen?

 The operations manager starts to make noises and the owners are not happy!

Everyone can see that operations can now make more products in less time and in less space; why, the operations manager asked “should we be paying for warehouses we don't need?”

Why is everyone unhappy? your new shiny reporting system tells everyone that operations and the company is doing worse than before, not the evidence they see before their eyes, with the KPIs being met.

You wouldn't let that happen, would you?

 Unless you use performance measurement systems that quantify the business success for all to see and use, you probably will.

Performance measurement systems are the foundations and backbone of Lean Accounting

lean accounting

• what is it
• why should you use it
• what are the benefits

as well as some of the main techniques.

All the papers are in PDF format and will open an Adobe program.You'll need to register to access these papers and then login.

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LEAN ACCOUNTING PAPERS

Remember to REGISTER or LOGIN to access these papers. We'll never share your data with anyone else!

Value Stream Costing- great paper for looking at a finance problem through traditional cost accounting, outsourcing & lean accounting 'lenses'. Brings home the strategic thinking that "lean accounting" instills and can contribute towards. Great for re-evaluating make or buy decisions.

Target Costing - one of the main principles and tools of "lean accounting" is discussed here.

Are you failing with Lean? - paper on why implementations of lean shouldn't stop at the manufacturing or distribution gates.

If you want to talk to someone about a FREE Lean Accounting audit, then please call our

Lean Accounting expert Neil Harvey on

07931 529300

or e-mail info@resqmr.co.uk

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