Lean management accounting

Also called Lean accounting. Lean management accounting is a restructuring of management accounting and control mechanisms to achieve accurate reporting of the results of improvements that are continually being realized during a Lean transformation. Because most existing accounting systems were developed in the early twentieth century to support large-batch production, these traditional systems often send signals that encourage batch processing and compartmentalized decision-making. 

Lean management accounting has the following objectives: 

• Provide accurate, timely and understandable information to
  drive the Lean transformation organization-wide, and to support decision making that leads to increased customer value, growth, profitability and cash flow.
  
• Support the Lean culture by providing information that is relevant, actionable and enables continuous improvement at every level of the organization.
  
• Present financial reporting that fully
  complies with generally accepted accounting principles (such as IFRS), external reporting regulations and internal reporting requirements.
  
• Use Lean to purge accounting processes of waste while maintaining tight financial grip.
  

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