Posted on by Nick Katko | No Comments
Some people in the accounting profession make an argument that Lean Accounting is not compliant with GAAP/IFRS (for the rest of this article I will simply use GAAP instead of GAAP/IFRS). This argument usually occurs in manufacturing companies and centers around the Lean Accounting practices of simplified inventory valuation and using a value stream income
Posted on by Nick Katko | No Comments
Many companies I worked with over the years require reporting total headcount to management along with explanations as to why headcount changes. What a mistake, especially in a lean company. What should matter to senior management is consistently improving productivity 10-20% annually. Productivity is defined as increasing output with the same resources. People are not
Posted on by Nick Katko | No Comments
I’ve seen some accountants understand value streams in a lean organization, and have also seen others not be able to grasp the concept. Understanding the role & function of value streams in a lean business is essential for accountants because it serves as a foundation for moving to lean accounting. Lean companies organize their entire