Profitability and cost management



Using activity-based approaches can help to overcome the following business challenges:
Improving sales strategies based on a profitability analysis of variouscost objects (clients, products, services, regions and sales channels)
Planning and controlling how resources are used, identifying wastefulexpenditure, and exploring opportunities for cost reduction without affecting core operations
Establishing the cost of internal functions and considering options for optimising them, including centralisation or outsourcing
Differentiating levels of service offered to clients/customers
Goals and objectives
We offer a full range of services to help you develop comprehensive ABC/M-based solutions for profitability management, including the development of a framework for the process and implementation of a specialised information system.
Our experience in developing cost management methodologies and models for companies in all industries, including banking, telecommunications, and oil and gas allows us to focus in on the issues in your business.
We help our clients with the processes of optimising cost management, analysing profitability and where necessary producing reports for the regulatory authorities (separate accounting for each type of business activity and regulated service).
Our professionals implement processes and models designed for use in industrial information systems such as SAP PCM, Hyperion, SAS, and ABM. They provide the support required and help to establish connections between ABC models and the client’s accounting systems.
Depending on your company’s business and the current levels of sophistication in the financial/management accounting and planning functions, a project can include separate АВС/M components or involve the development and implementation of an integrated solution. Our expert consultants are experienced in developing АВС/M systems at all levels, from diagnostics of the existing system and developing an activity-based costing concept to supporting the implementation of automated solutions for transaction accounting, data processing and reporting.
We will assist you in forming a management reporting package that contains process-related performance indicators based on an ABC/M model. We will help you to integrate the ABC/M system into your existing resource-intensive process management systems, allowing you to use the ABC/M system as both a reporting tool and a business management tool.

Our approach
An integrated cost and profitability management system based upon an ABC/M model which consists of the following components:
Management accounting forms for the cost of resources and processes analysis, services and analysis of the profitability of other cost objects
ABC/M methodology including lists of resources, processes, cost objects, allocation bases, and the principles for income/expense allocation
ABC/M model, either Excel-based or in a specialised information system
RAS/IFRS accounting policy, chart of accounts, journals and instructions enhanced to support ABC/M methodology
Procedures for maintaining and updating information kept in the ABC/M model

Staff trained to operate the model and prepare management information and analysis on the cost of resources, processes and services.

Comments

Post a Comment

Popular posts from this blog

How to Choose Furniture for Your Home

     Choosing furniture for your home can be a lot of fun and anightmare. It can be difficult to find quality, comfortable accessories thatreflect and blend your own style to create a harmonious interior. You don't want to throw everything away either. The question arises as to which elements should be stored, covered or modified to fit the image of the room. In short, when choosing furniture, you need to consider both practical and decorative.   The furniture and its functions The first thing in deciding whether or not to use furniture is your job. Ask yourself what kind of furniture you need. Different functions can be performed in a special room that requires special furniture (bedroom, sofa, etc.). Think of everyone in the house. Does anyone like comfy lounge chairs? Need more storage space for all your kids toys? After reviewing these important questions, pay particular attention to the following:   One. Simple furniture in any room Each r...
Read more

Financial Accounting

Financial accounting is the process of recording, summarizing and reporting the myriad of transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements , including the balance sheet , incomestatement and cash flow statement, that encapsulate the company's operating performance over a specified period. BREAKING DOWN 'Financial Accounting' Financial accounting utilizes a series of established accounting principles . The selection of accounting principles to use during the course of financial accounting depends on the regulatory and reporting requirements the business faces. For public companies in the United States, businesses are required to perform financial accounting in accordance with Generally Accepted Accounting Principles (GAAP). International public companies also frequently report financial statements in accordance to International Financial Reporting Standards. The est...
Read more

Management information system

Management information system (MIS) refers to the processing of information through computers and other intelligent devices to manage and support managerial decisions within an organization. The concept may include systems termed transaction processing system, decision support system, expert system, or executive information system. The term is often used in the academic study of businesses and has connections with other areas, such as information systems, information technology, informatics, e-commerce and computer science; as a result, the term is used interchangeably with some of these fresh cut areas. Management information systems (plural) as an academic discipline studies people, technology, organizations, and the relationships among them.[1] This definition relates specifically to "MIS" as a course of study in business schools . Many business schools (or colleges of business administration within universities) have an MIS department, alongside departments of accoun...
Read more