Lean Management Accounting
Sometimes called Lean Accounting, it refers to the restructuring of management accounting and controls to accurately report the results of improvements that are continuously being made during a lean transformation. Because current accounting systems were mostly developed in the early 1900s to support large batch manufacturing, traditional accounting systems often send signals that encourage batch processing and silo decision-making.
Lean management accounting has these objectives:
- Provide accurate, timely, and understandable information to motivate the lean transformation throughout the organization, and for decision-making leading to increased customer value, growth, profitability, and cash flow.
- Support the lean culture by providing information that is relevant and actionable, and empowers continuous improvement at every level of the organization.
- Present lean management accounting financial statements that fully comply with generally accepted accounting principles, external reporting regulations, and internal reporting requirements.
Use lean tools to eliminate waste from the accounting processes while maintaining thorough financial control