{"id":4224,"date":"2020-05-12T00:01:00","date_gmt":"2020-05-12T00:01:00","guid":{"rendered":"http:\/\/localhost:10003\/the-lean-post\/articles\/an-accountants-guide-to-understanding-lean-accounting\/"},"modified":"2020-10-07T19:01:57","modified_gmt":"2020-10-07T19:01:57","slug":"an-accountants-guide-to-understanding-lean-accounting","status":"publish","type":"post","link":"https:\/\/www.lean.org\/the-lean-post\/articles\/an-accountants-guide-to-understanding-lean-accounting\/","title":{"rendered":"An Accountant\u2019s Guide to Understanding Lean Accounting"},"content":{"rendered":"

I think one of the difficulties accountants face in understanding Lean Accounting is that we are trained to be \u201cdoers\u201d of accounting. Our training and education is about how to perform accounting tasks and functions, from learning the basics of journal entries in Accounting 101 to how to close the month in the company we work at. We want to master how to execute, and the better we are at executing, the better accountants we are.<\/p>\n

To understand Lean Accounting, accountants need to adjust their perspective from \u201cdoing\u201d to \u201cpracticing.\u201d And the first step to begin practicing Lean Accounting is to change the way we think as accountants.<\/p>\n

Lean Accounting is like Lean \u2013 it is a journey towards a destination. Our journey is practicing Lean Accounting and the destination is organizational improvement. Our journey never ends because the destination is not final. This is the first change in perspective for accountants \u2013 changing the way we think about accounting in a Lean organization. It\u2019s not about us (the accounting function); it\u2019s about the organization as a whole and the customers the organization serves.<\/p>\n

The second change in perspective for accountants is understanding and accepting continuous improvement. All business processes can improve in a Lean organization, including accounting processes. It\u2019s not that the accounting processes are bad, it\u2019s simply that they can get better. It\u2019s important for accountants to change the way we think about the processes we \u201cown.\u201d Accounting is not exempt from improvement.<\/p>\n

The final change in perspective for accountants is creating value for our internal customers. Accountants are very good at understanding and delivering value to external customers because the quality of our work is based on GAAP\/IFRS, tax laws and other regulations. Internal customers in Lean organizations value specific, relevant, timely, actionable information and data which support Lean practices. Accountants need to listen to what their internal customers value and deliver on that value by making the necessary adjustments to accounting processes to deliver the exact value desired.<\/p>\n

\u201cPractice makes perfect\u201d is an old wise saying, and it applies to Lean Accounting. The first step to practicing anything new is always mental, whether it be a musical instrument, a sport or a new skill. Once someone opens up their mind, it becomes easier to learn how to do something through regular practicing. If you are new to Lean Accounting, spend time opening up your mind, before diving into the \u201chow to\u201d of Lean Accounting.<\/p>\n

Lean Accounting is applicable to any company, in any industry, that commits to a Lean strategy.<\/p>\n

I like to define Lean Accounting this way:<\/p>\n