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In recent years, financial professionals have been using outdated ideas and methods to judge how well companies are doing and give feedback to the bosses. This helps the executives and CEOs figure out what changes they need to make and make important choices. The boss wants assistance in locating the means to finance a new project. He wants to find areas where we can reduce costs in our products and services, as well as determine if changes made have led to making more money.
The CEO wants assistance in understanding how the company has gotten better or worse and what the future will be like considering the present situation. Lean accounting refers to the way a company reports its finances when it follows Lean thinking. Lean thinking means the company focuses on giving value to clients and getting rid of wasteful practices by improving how work is done and materials are managed.