Accounting

Internal Reporting and Improvement Initiatives (Portfolio 5313)

  • Internal Auditing: Fundamental Principles and Best Practices analyzes the development of internal auditing, the importance and visibility of which have expanded.

Description

BNA Tax and Accounting Portfolio 5313, Internal Reporting and Improvement Initiatives (Accounting Policy and Practice Series), discusses popular corporate improvement initiatives and the role of internal accounting functions in implementing and maintaining these initiatives. It, in essence, explains how accounting departments can function in a business environment that is demanding more real-time information and less historical accounting information.

The Portfolio begins by explaining the traditional role of internal accounting departments and how much of the information these departments provide does not contribute to the efficient operations of most businesses. Essentially, many accounting departments use traditional cost allocation methods required by generally accepted accounting principles, but these methods typically do not produce information that is helpful in making business decisions. Moreover, much of the information accounting departments provide concerning productivity, such as certain variance reports based on historical information, typically do not provide the feedback necessary to help managers and employees assess their performance in a meaningful manner.

The Portfolio sets forth a practical vision for how accounting departments can transform themselves into corporate team members who contribute real-time information to managers and workers to help those individuals assess their performance and timely identify and correct production problems. It discusses the cultural changes that must occur and the expanded roles accountants must take to effectuate this transformation.

This Portfolio explains many of the popular improvement initiatives that many organizations have adopted, in one form or another. These initiatives are six sigma, just in time, lean, Demand Flow®, and Theory of Constraints. These initiatives are designed to improve internal processes and production quality. One common theme in these initiatives is the concept of a “pull” system, in which work is produced in response to customer demand, as opposed to a “push” system, in which work is produced in anticipation of customer demand. The Portfolio explains the basic concepts and benefits of each of these initiatives and the evolution of the initiatives. It also provides guidance on how to develop and implement an effective outsourcing strategy.

After explaining several improvement initiatives, this Portfolio explains the metrics that accounting departments should develop to support these initiatives. It also explains how an organization’s books and records may change once it fully implements an improvement initiative.

This Portfolio may be cited as BNA Tax and Accounting Portfolio 5313, Budd and Budd, Internal Reporting and Improvement Initiatives (Accounting Policy and Practice Series).

Table of Contents

I. Purpose and Scope of Portfolio
II. The Accountant’s Role as it Exists Today
III. The Future Role of Management Accounting
IV. New Operating Environments
V. Six Sigma and Other Quality Programs
VI. Just In Time (JIT)
VII. Lean Operations
VIII. Demand Flow
IX. Theory of Constraints
X. Outsourcing: The Outs and Ins
XI. Transforming Operations Accounting
XII. Information For Decisions
XIII. Performance Measurement and Evaluation
XIV. Closing Comments

CharleneBudd
Charlene Spoede Budd
Budd Management Systems
budd-charles
Charles Budd
Principal
Budd Management Systems
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