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What is Lean Accounting All About?
And How Does it Work?

Companies working seriously to implement Lean thinking will eventually confront the problems caused by their legacy accounting systems.

These systems are complicated and inherently wasteful; they require huge amounts of non-value work. They measure and motivate non-lean behaviors. They cannot measure the true financial impact of good lean improvements. They are hard to understand and do not support good lean business decisions.

This page provides a framework for understanding the principles, practices, and tools that support Lean Accounting. These are being developed by lean accounting thought leaders, who came together at the Lean Accounting Summit in September 2005.

"While Lean Accounting is still a work-in-progress, there is now an agreed body of knowledge that is becoming the standard approach to accounting, control and measurement. These principles, practices, and tools of Lean Accounting have been implemented in a wide range of companies ... (they) can be readily adjusted to meet your company's specific needs and they rigorously maintain adherence to GAAP ..." Brian Maskell & Bruce Baggaley, Lean Accounting: What's It All About? (TargetĀ® Magazine, 1st Issue, 2006, published by AME)

 
   
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1. Provide accurate, timely, & understandable information to motivate lean transformation throughout the organization, and for decision-making leading to increased customer value, growth, profitability, and cash flow.
2. Use lean tools to eliminate waste from the accounting processes while maintaining thorough financial control.
3. Fully comply with GAAP, external reporting regulations, and internal reporting requirements.
4. Support the lean culture by motivating investment in people, providing information that is relevant and actionable, and empowers continuous improvement at every level of the organization.

 
   

Browse the MindMap below to learn more.

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