Financial Management and Project Based Accounting
This client sought our help with understanding project financial performance and restructuring their management accounts
What was the challenge...
The business we helped was a project-based business that was struggling to understand profitability. They had no project management function, no defined WIP valuation process, inadequate project cost tracking, no revenue recognition process and a lack of project management process
What did we do...
Initially the suitability of the company's accounting system to manage projects was investigated to ensure it was capable of project-based costing. Once the limitations and existing customisations were understood a plan was developed for the introduction of project accounting.
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This included new and revised business process and procedure documents integrated into the AS9100 business management system, introduction of new business systems to account for existing system limitations, recruitment of new project management staff, upskilling of existing staff.
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Once the system had gone live initial teething problems were resolved and the business systems were honed over a period of time to maximise efficiency whilst providing the business accurate and consistent outputs.
Features and Benefits
01.
Implemented an AS9100 audited compliant process
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02.
Increased productivity eliminating non value add effort
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03.
Demand and capacity understood
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04.
Formal monthly review cycle implemented to enable project performance to be understood
05.
Formal change management process and robust costing and pricing tools
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