LEAN ACCOUNTING CAPT Larry R. White, CMA, CFM, CPA, CGFM Commanding Officer, USCG Finance Center What is Lean Accounting? Lean Techniques should be applied to accounting processes. Managing & measuring operations by financial accounting measures often produces bad decisions.
CAPT Larry R. White, CMA, CFM, CPA, CGFM
Commanding Officer, USCG Finance Center
Customers: USCG, TSA, DNDO, DHS Purchase Card
Transactions: 2,000,000 Payments/$5B
Financial Reports: 600/month
Staffing: 360 GS, 22 Military, 170 contractors.
Second largest data center in CG.
Respect for People
Get Control of the Work (1 day WIP)
Improvement is everyone’s job, all the time
Know what the customer values from your process better than they do – and delight them!Lean Concepts
Planning, & Control
Decision Support, Planning,
& Control over Value Creating
Financial Reporting & Oversight
Preparing and Auditing
GAAP Financial Statements
Need for “actionable” cost information a top priority
Despite importance, cost information is often impaired
Implementing new cost mgt tools & systems islow to medium priority
Traditional mgt accounting tools remain in wide use.
Decision makers require clear, quantified value proposition for new tools.IMA Cost Management Survey
Activity Based Methods objectives.
Theory of Constraints
Process Based Financial Reporting
Non-financial Performance Measurement
Strategy Planning & Execution
Customer Lifetime Value
Enterprise Risk Mgt
Resource Consumption AccountingStrategic Tools for Management Accounting