Instrumente de Contabilitate Manageriala / Management Accounting Tools

The application of management accounting tools provides opportunities to reduce costs, increase profitability and improve cash flows by managing effectively key topics like product profitability, customer profitability, total cost management, competitors’ cost benchmarking, transfer pricing methodology and working capital management.

Management Accounting in Practice

Management Accounting combines accounting, finance and management practices with leading edge techniques in order to drive businesses successfully.

The subjects that we cover in this project address operational, managerial and strategic needs of an organization and can be used independently or in combination based on specific business requirements. Our practical framework enables the development of performance indicators that focus on core processes, activities and value drivers of a business as well as the identification of new opportunities to improve both short-term performance and long-term competitiveness.

Expertise and Tools

Our tools add value to strategic and operational decision-making through employing a cost/ benefit approach, giving full consideration to technical and behavioral factors and using different costs for different purposes:

  • Product profitability: what profits/losses are being made by individual products?
  • Customer profitability: why some customers or groups are worth more than others?
  • Total cost management: what are the cost drivers and elements that add value to end customers?
  • Competitor’s costs: what are the company’s sources of competitive advantage vs. competitors?
  • Transfer pricing: how an optimal TP system should be set up to ensure alignment at all levels?
  • Working capital management: what are the key elements to improve company’s cash cycle?
  • Balance Sheet management: what is the optimal proportion Debt to Equity for a company?

Methodology and Benefits

The project methodology that we use includes the following key activities:

  • Diagnose the current systems and practices;
  • Analyse and agree systems redesign proposals;
  • Develop and communicate project milestones and objectives;
  • Set-up financial and non-financial KPIs;
  • Select and implement appropriate mechanics;
  • Create, collect and analyse data and information;
  • Monitor and communicate results;
  • Train and transfer knowledge to company’s key users (controllers, finance managers, etc.);
  • Institutionalize best practices for continuous improvement.