Lean Accounting: Financial Management for the Lean Organization

To achieve success, a lean organization must develop an effective and efficient management accounting function that complements its financial accounting system to provide a knowledge base for effectively making decisions about the future (this is critical because the focus of financial accounting is on past activity). A lean management accounting system makes relevant information available to decision makers on a timely basis.

In a broader context, lean accounting is a financial learning system for the entire organization, not just the accounting function. Because the economics of lean changes the relationships between operations and financial numbers, the whole business must learn the new relationships and incorporate the dynamic context of these relationships in all financial analysis.

 

What Is Lean Accounting

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BMA Inc. has been a tremendous help to us. Their experience and knowledge of lean is outstanding, and essential to the success with Lean Accounting. BMA does an excellent job in continuously linking these two together. Lean Accounting does not make sense without lean and vice versa.In facing the complexity of a global business, with numerous plants and divisions, BMA’s insight into systems and IT issues has also been crucial. Discussions tend to accelerate in the wrong direction, especially when it comes to this critical area. These unfruitful discussions disappear as BMA Inc. guides the improvement processes with great professionalism.
Division Finance Manager, International Manufacturing Company

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This valuable assessment tool allows a company to diagnose where it stands with lean accounting. Looking at each of the primary issues of lean accounting, you can assess your company on a scale from traditional to world class.