Lean Accounting: A Decision-Making Tool

Lean accounting is a management decision-making tool available to companies involving streamlining a company’s competitive internal management strategy to minimize waste, such as excess inventory, to maximize profits. This exploration of lean accounting processes looks at how companies can maximize continuous improvement using reporting and accounting methods. Barriers to lean accounting implementation are identified together with means for their resolution. The basic understanding of lean accounting is it targets waste and non-value-adding activities especially those that do not benefit the internal or external stakeholder in the manufacturing or service setting. Lean accounting offers specific styled reports, performance measures.