Lean Accounting is the next big movement for companies looking to gain an edge. The term “lean” was coined in the 1990’s to refer to the systematic reduction of waste in the manufacturing process. The purpose is to get rid of anything that does not add value to the product.
Lean accounting is the same application except applied to the accounting process. This is not a new term, however, it is made all the more powerful by the opportunities presented with new technology. Your company can reduce the non-value adding processes of your accounting. The effects of this will be:
- Less administration time by you;
- Greater clarity in systems; and
- Real-time access to information.
How do I do this you ask? Easy just follow these three steps:
- Map out your accounting process this includes both your invoicing to customers and how your purchases (expenses) get entered into your accounting system and communicated with your bookkeeper or accountant.
- Identify the purposes (or value) of the accounting function: tax filings, timelines for decision making etc.
- Consider the available technologies to streamline these processes while still providing the value (or enhancing it). Focus on areas where information is exchanged between people. Consider using document management systems to systemize document flow. For example, you (or your team) can use specific phone apps to submit receipts on the go when they happen that go directly to the bookkeeper. Also consider integrations with things like your payroll, point-of-sale and quoting systems.
Good luck in your streamlining. If you have any issues, be sure to call Virtual Heights Accounting. We offer packages for full system reviews. Just ask for a Lean Assessment Quote and let us work are magic.
Virtual Heights Accounting is a CPA and Business Coaching firm located in Rossland, BC. We are a virtual firm focused on using cloud based technologies to reduce the administrative burden of business owners. Focusing on bookkeeping, accounting, business coaching and development with a tech focus. www.vhaccounting.ca. The above represent our own opinions any comments, please comment here or feel free to contact us.