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Virtual Cost Accounting Services Alongwith Bookeeping
| The cost accounting function has a pervasive influence in the growth of any organization, if implemented properly. Yet, it is normally ignored in because of the skepticism about its usefulness and assuming it as a non core activity. At Synergy, we understand how important cost accounting is for any organization.
| Cost accounting focuses on providing information for management decision, which making it all the more interesting. Typically, the cost accounting task is to conduct a short analysis of a specialized topic, draw conclusions, and make recommendations that will be acted upon by management to make improvements.
| Besides conventional cost accounting functions such as cost bookkeeping, cost ascertainments, cost analysis, cost comparisons, cost controls and providing various cost reports, we also provide you other services, such as compiling profitability levels for various product lines, or profit levels by division, implementing various costing techniques like Standard Costing, Throughput accounting, Activity based costing, Just in Time approach etc.
| | | We at Synergy Provide the following Cost Accounting Services :-
| - ASCERTAINMENT OF COST OF PRODUCT
We help ascertain cost of production of each job, process, or work order by applying different methods of cost accounting, such as job costing, process operation costing, contract costing etc. according to the suitability and needs of the organization. . - FIXATION OF SELLING PRICES
Ascertaining cost of production help in fixation of selling prices of the product or process or job or operation Though the prime responsibility for setting product prices rest with sales and marketing function, which has the best knowledge of current pricing in the marketplace, they would need to know the cost of each product sold so that it does not set prices that are below a product’s cost, thereby creating loss on every unit sold.
At times, even customers come to the company with offers to accept large volumes of product only if the sales price is substantially lowered. In these instances we determine the relevant cost of the product in question instead or financial costing based on absorption costing method. - COST CONTROL PROCEDURE
We obtain a detailed list of all costs incurred, track down the origins of each one, insert this information into a process flow for the functional area where the costs are incurred and see which costs can be reduced or entirely eliminated by omitting the associated process steps. We use various cost control techniques such as Budgetary Control, Standard Costing, Target Costing, Value engineering, JIT etc. - PROVIDING INFORMATION FOR DECISION-MAKING
We provide information for managerial decisions for formulating operative policies by offering a thoroughly analysed cost data which forms the basis of formulating policy regarding various business decisions. This is not a simple analysis, requiring the accumulation of all related cash flows for all the possible decisions and discounting them to identify their present values. Such an anlysis relate to the following matters
a. Determination of cost-volume-profit relationship.
b. Make or buy decision
c. Decision regarding Shut down or continue operation at a loss
d. Continuing with the existing machinery or replacing them by improved and economical machines. - BUDGETING
As a cost reduction approach, most of the organizations resort to budgeting – A master budget and various subsidiary level budgets that roll up into the master budget. This involves information to which the cost accountant can contribute a great deal. We provide you with flexible budgets, in which changes can be incorporated and implications can be seen at a future date with minimal efforts. We also provide you with facility wide budgets, including those in such categories as repairs and maintenance, insurance, and utilities. - FACILITATE PREPARATION OF FINANCIAL STATEMENTS
As your virtual cost accountants, we ensure that all the cost related information which goes in the financial statements are accurate. We provide you with various control reports such as reconciliation of the profit as per financial accounts with that as per cost accounts, verification of the inventory rates at the beginning and at the end of the period, various ratios of Gross profits, inventory turnover etc. - ANALYSIS TO VARIOUS DEPARTMENTS
Various departments in the organization need to take various decisions on a day to day basis but they do not have global costing data. For example, a department manager may want to know what will happen to costs if certain functions are outsourced to a supplier. Alternatively, the warehouse staff may want assistance in determining the amount by which working capital requirements will be reduced if a new project to shrink inventory levels is implemented. Thus, the cost accountant may be asked to review a wide variety of function-specific activities on a project basis.
We will provide sufficient analysis and data, to each of these departments based on the costing and accounting data we possess.
| | | Reports Generated by us for various Management Levels
| CORPORATE-LEVEL REPORTS
| Our Corporate level Reports include information about a few very critical matters, that senior management, mainly Promoters/high level management are most interested in. The decisions at this level taken based on the reports provided may significantly affect the Profitability, Return on assets, Productivity, Forecasts, etc. The reports for this level are short, but informative and normally provide precise information helpful in taking high level decisions.
| BUSINESS UNIT-LEVEL REPORTS
| Business Unit level reports must include a much larger quantity of information compared to Corporate level reports, for the middle level management needs to know about the operation of their concerned department/territory, as well as a host of operational issues such as the cost of quality, inventory turnover, machine utilization, profitability, and cash flow projections. This tends to be the most voluminous of all reporting packages, as well as the one that includes the greatest mix of financial and operational information.
| | FUNCTION-LEVEL REPORTS | Function level reports are provided to a specific department on demand. These can be issued to individual departments or at lower levels, for example, to the supervisors of individual machines. Such reports are custom-designed for each recipient, with some requiring more financial data (e.g., for the sales manager who wants to know about customer bad debts or orders booked) and others including almost entirely operational information (e.g., for the warehouse manager who is interested in inventory turnover, kiting percentages, and receiving accuracy).
| PROJECT-SPECIFIC REPORTS
| We also provide project specific reports, which include analysis of just those costs being incurred for a specific project. Such a report includes comparison of incurred costs against budgeted costs expected to have been incurred at various stages of the project. Apart from such a comparison, there are various other details included in the reports such as price escalations, cost overruns due to customers etc.
| DECISION-SPECIFIC REPORTS
| You may call us to report on a specific issue, where decision that needs to be taken should be based on costing information. Such decisions include Make or buy decision, decision regarding Shut down or continue operation, Continuing with the existing machinery or replacing them by improved and economical machines, Cost associated with a decision to be taken, etc. Once the decision is made and the installation completed, there is no longer a need for such reports.
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