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The Financial Controller and CFO's Toolkit, 3rd Edition by David Parmenter

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Chapter 15Lean Accounting

The lean movement gave the impetus for a new look at accounting called lean accounting, which started around 2004. Lean accounting offers the accountant many profound insights and will improve the way we report costs. Lean accounting has progressed to such an extent that there is now an annual lean accounting summit. The key writers in this space include:

  • Jeremy Hope1
  • Brian Maskell and Bruce Baggaley2
  • Orest Fiume and Jean Cunningham3
  • Frances Kennedy4

STREAMLINING THE CHART OF ACCOUNTS

The chart of accounts is where many problems start. The complex GL packages have made a serious misjudgment with regard to the need for myriad accounts. The financial controller and CFO need to be alert to the problems of a large chart of accounts.

Limit the P & L to Fewer than 60 Account Codes

Show me a company with fewer than 60 account codes for its profit and loss statement (P & L) and I will show you a CFO or financial controller who has seen the light. However, I have seen many ...

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