While cost accounting is often used within a company to aid in decision making, financial accounting is what the outside investor community typically sees. Financial accounting is a different representation of costs and financial performance that includes a company’s assets and liabilities. At getsix® we believe, that cost accounting can be most beneficial as a tool for management in budgeting and in setting up cost control programs, which can improve net margins for the company in the future.
Cost and Performance Accounting
The outcome of business activities (profits, amounts and quality of products made) are summarised and represented in cost and performance accounting. The utilisation and/or consumption of various production factors (costs) within a company are also represented. The information extracted from cost and performance accounting is used for short-term.
Your enterprise may also function perfectly without economic analysis of internal processes. What will happen, however, if the need arises for you to arrange a loan, and the bank inquires about the targets and plans of the enterprise?
What if you wish to sell the firm and a potential investor inquires about cost structure?
Service Overview – How getsix® can help you?
Before it comes to this you should look for answers to the most important questions. We will assist you in adapting the bookkeeping at your enterprise to demand for information.
getsix® will support you during the drawing up and implementation of a financial reporting systemoptimally matched to the organisational structure of your enterprise, institution size and staff potentials.
getsix® cost and performance accounting services offers you a high level of flexibility and a slight cost for services and information provided, indispensable for the effective further development of your enterprise.
As a more integrated service getsix® can wholly undertake the creation of an external financial controlling department with our cost and performance accounting services.
Our services provided:
Detailed budgeting, forecasting, and monitoring of every revenue and cost centre is vital to create a culture of performance excellence and to deliver superior returns. Annual operational and capital budgets are prepared in advance of year-end together with cash flow projections, budgets are submitted to clients for approval, and trading performance is prepared monthly against the plan.
Detailed monthly and quarterly forecasts are submitted with variances tracked in order to flag shortfalls or indicate better performance. All financial statements are reviewed by getsix® and submitted with informative commentary.
In addition to running reports and analysing past performance, on a quarterly basis, we prepare a forecast through the end of the financial year, which is presented to and discussed with business owners, again ensuring that performance and expectations are aligned.
- Analysis of past economic performance according to historical financial data;
- Prepare and submit an operational and capital plan and budget for each operating year, jointly with the operations department;
- Report generation including comparison of actual with budgeted results as well as the results achieved in the previous year;
- Implement standards and agreed reporting for each company, as well as implementing procedures, processes and forms;
- Liquidity management, break-even analysis, supporting graphics, analysis, and comments for internal use or for third parties;
- Supervise and maintain complete books of account and records for the profit and cost centres of each company.