Do You Have The Right Costing Partner?

Apr 13, 2015

It is April 13th, which for a public accounting firm means excitement and chaos all in one. There is so much work to get completed before April 15th. In the midst of the hectic environment, there is a light and airy feeling that we have almost made it yet again. We may survive this crazy thing called tax season. I often feel torn this time of year. I love working on costing and consulting, and I feel bad that I cannot always give it the attention I want this time of year. However, I also enjoy interacting with my clients and learning new ways I can help them succeed. Furthermore, I acquire more valuable tax information, which I can apply to all of my compliance and consulting clients.

I am not your typical cost consultant as I do not focus on costing 100% of the time. Nonetheless, I think my varied focus is what makes me a better consultant! I understand not only the implications of tax and accounting decisions, but also the impact those decisions may have one the managerial side and vice versa. I appreciate the difference between valuing your inventory for an audit and knowing the cost of your products. Most CPA’s do not understand or are concerned with the cost side, and most CMA’s do not care about the accounting side. I believe it is critical to have the right person on your team, one that comprehends both sides.

Do you have the right person in your corner? I talk to so many people that do not have the support they require. The CEO or owner does not understand the need for accurate costing, and the CFO or controller is frustrated. I have struggled with how to educate the CEO who does not recognize the necessity of accurate cost information. Unfortunately, most eventually see the need when their business is threatened and they are about to lose everything. I have helped save many businesses and livelihoods through developing accurate costs information. As a result, business owners can react at any point to make sound decisions to save their business and turn it around. Without knowing such information, it’s almost impossible. I hope you never have to get to that point, I love the satisfaction of helping a business owner, but the fear of them losing everything is a lot to bear as well.

I would welcome any thoughts on how you suggest we approach CEO’s and help them understand the need for clear and accurate costing data. This would in return provide you the support so desperately desired.

Categories: Cost Accounting