Fall 2009 issue of Horizons

Raise Your Expectations CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Organizations operate through a series of decisions. The accounting function in any organization is at most six steps away from any action that takes place within it. By eliminating waste within accounting operations, no function is better positioned to provide accurate, relevant and timely information to decision-makers to create and sustain maximum stakeholder value.

a lean accounting environment. Summarized below is a practical approach to this transition and some of the benefits created as an accounting function steps through the process. While the most value is derived through the implementation of all steps, this evolution does not occur overnight and can be applied in differing degrees, depending on the organization’s culture for change and the industry in which it operates. • Application of lean to accounting operations: eliminating waste within accounting operations such as the financial closing, accounts payable, accounts receivable and payroll. A few of the benefits realized include reduced operational expenses, increased cash flow and increased capacity within the accounting function. • Identification of organizational value streams: analyzing the flow of materials and information to bring a product or service to customers (internal and external). A cross-functional exercise that breaks down an organization’s silos to understand business processes from cradle to grave, ultimately highlighting value-added and non-value added activities. • Implementation of value stream accounting: identification and application of revenue and expenses by value stream. Allows the organization to directly connect value-added and non-value added activities to financial performance. • Plain English management reporting: designed from value stream exercises to align reporting with lean theories of waste. Reporting is easily understood by internal stakeholders outside of accounting, providing information that drives the right organizational behavior. • Lean external reporting: combines external reporting practices with internal management reporting based on value streams. Lean external reporting removes the need to maintain dual reporting and provides external stakeholders with the benefits of plain English management reporting.

Questions? Contact:

Cathy Behnen, CPA, CIA Partner Internal Audit Services Group 314.290.3204 cathy.behnen@rubinbrown.com Kristin Parshay Manager Internal Audit Services Group 314.363.9039 kristin.parshay@rubinbrown.com

18 u fall 2009 issue