Management & Cost Accounting

Management & Cost Accounting is where all of the fun is had in the accounting world!

It is about taking a look at what is happening within the business.  It is about tying together what the business is DOING compared to what the financial results are SHOWING. It is about linking the people and activities of the business to the financial outcomes, and finding a way to measure success through those linkages. It is all about using the numbers as a diagnostic tool to manage and shape the business.

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Business owners and managers all know when they need a traditional accountant – to get their financial statements completed and for income taxes.  But when does your business need a management or cost accountant?  For many that is not as clear.  If you answer yes to any of the following, you likely need the expertise of a management accountant to help you out.

  • You have sales, but you are not sure what sales activity is generating the most income
  • You have different income streams, but your expenses are not allocated and you have no idea how to allocate direct labor and direct materials accurately
  • You spend money on ‘advertising’ but it is based on demand and is not linked together based on a marketing strategy
  • You have inventory, but you are not sure what your turnover is and have some inventory that is stale and some inventory that you continually run out of
  • You have a book keeper, but other than your income tax, you never look at your financial reports
  • Your cash flow is not matching up with your loan payment and managing cash flow is a continual challenge
  • You wished you had reporting policy so that your managers were giving consistent information and data – but don’t know where to start
  • You have a board that you report to but you have no idea what their definition of success is

 

 

 

 

 


 
 
 

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