Support for the Implementation of Cost Accounting / Managerial Accounting

We provide services to support the introduction of cost accounting / managerial accounting for the purpose of promoting management transparency. We propose services in accordance with the needs of each client.

Service Examples

1) Support for KPI (Key Performance Indicator) implementation
Although many companies quantify their management goals (e.g. profit margin on sales (%)), it often happens that these KPIs are not appropriately designed. Under these circumstances, integrating the KPIs into the business would not be sufficient for the business to take appropriate corrective actions where necessary. In order to resolve this problem, we introduce KPIs using the following approaches.

  • * Breaking down management goals (EBITDA, ROA, etc.) into controllable items and integrating them into KPIs;
  • * Assigning KPIs to each division and person in charge to clarify their management responsibilities;
  • * Connecting KPIs to personnel management systems (pay-per-performance, performance appraisal, etc.);
  • * Supporting operation (including system introduction) to monitor the KPIs' progresses.

2) Support for the introduction of cost accounting
Cost accounting is extremely important for companies especially in manufacturing industries. However, although many companies have existing cost accounting structures, they have some trouble relating to the operation of these structures. We can introduce cost accounting from the following points of view.

Cost management Initially, our CPAs will review the system to identify problems. We set up a budget for each product based on standard costs and work to improve the variance between standard and actual costs. Additionally, we apply the following cost management cycles to achieve the target profits.
Sustainable maintenance system We ensure the data accuracy by updating standard costs and analyzing cost variances. Additionally we develop a follow-up system and the frequency of maintenance based-on the product lifecycle.
Consistency with business budgets We aim for consistency between budget variances and cost variances with a view to improving the efficiency of managerial accounting.
Relationship between variance analysis, KPIs and order screening We develop a process that enables us to estimate appropriate costs in order to be able to flexible in the businesses response to special requirements and discount requests.
Coordination with financial accounting We assure the accuracy of figures and assess the impact on responding to audits and internal controls (J-SOX).
Cycle of cost management
Cycle of cost management

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