The accounting and costing world is in transition. Traditionally, accounting for small manufacturers has long been seen as a tool for reporting results at the end of the month or quarter. Companies get orders, build products, pay expenses, send out invoices, receive payments, and then add and subtract to see where it stands in profit and/or loss. Unfortunately, a results-driven accounting process may not be enough to keep a finger on the pulse of daily input/output, where a single event can wipe out the profit margin for the day or reporting period.
 
With today's challenges, no business manager or owner has room for error if they are to grow and sustain their company. That's why a new type of lean accounting procedure—a customer-focused, pro-active driven process—is gaining momentum. Designed specifically to optimize lean manufacturing, it offers a real-time method for monitoring and adjusting value streams, with data presented in a visual, color-coded graphs that every employee on the shop floor—and in the back office—can understand and respond to quickly.

top of document