As previously discussed there are an array of benefits to implementing Management Accounts. So far, we have showed how their use can:
- improve decision-making
- show when to purchase or manufacture and;
- allow budgets and forecasts to be produced.
The scope of information that Management Accounting can provide stretches beyond costs and budgets, it can show:
- the bigger picture of productivity and efficiency of the work force
- how improved efficiency can result in greater profits
In many cases, the largest cost for a business is its staffing levels. Therefore, staff productivity levels could be the difference between profit and loss on different products, branches or for the company as a whole.
Our work with a client in the manufacturing sector, implementing management accounts, allowed them to assess staff efficiency levels like never before.
Management Accounts and analysis produced by ammu allowed senior management to see clearly staff productivity levels across, not only the full business, but individual products and specific branches too.
The client was able to view employee idle time against total capacity, how efficiently they were using the resources available to them and see how profitable, or not, certain jobs or contracts were. The benefits of having this information available was that processes could be altered to improve productivity and reduce idle time. Maximum productivity ensures the maximum recoverability on all jobs and improves profitability across the company.
Contact us today to discover the benefits of Management Accounting to your business.
Contact us today!