Cost-Based Accounting

Find an expert in cost accounting Retaining the service of a cost accounting expert is one option to help assess actual costs that will allow you to make profitable business decisions. Find either a certified public accountant or certified bookkeeper through referral services or associations. As with any professional whose services you retain, be sure to get references to guarantee competency.

I recommend:  The National Association of Certified Public Bookkeepers refers you to certified bookkeepers within your state. It maintains a database of bookkeepers with requisite skills and licensing. Most bookkeepers should know the basics of cost accounting, but always get references. AccountantsFinder.com provides a database of certified public accountants by state. It can suggest accountants that are experts in cost management to help you make informed business decisions.

Buy cost accounting software that supports the various accounting methods Good cost accounting software provides you with alternative methodologies. Multiple options offer flexibility and can maximize profitability.

I recommend:  Infor's Visual Enterprise supports both actual and standard costing methods as well as offering activity-based costing. Acorn Systems also provides Activity Based Costing and Management as well as a Cost-to-Serve module that allows you to analyze end-to-end supply chain costs. This maintains costs for those who deliver value-added services.

Educate yourself and your staff about cost-accounting Take advantage of online tutorials and seminars to educate you and your staff about cost accounting methods. Then decide which methods work well with your business accounting needs.

I recommend:  Harvard Business Publishing provides an online tutorial introducing you to cost accounting systems. The tutorial includes information about cost system designs and their variations; concepts about direct and indirect costs; and how costs are assigned. You can enroll online. Another online resource is Train Up.com's cost accounting decisions training class that explains the basics of cost accounting to business managers.