eJournal Sept 2021 Volume 6 - Flipbook - Page 7
To achieve, just focus.
Lean Accounting
Senthilkumar
Senthil Kumar
Subramanian
CFO, Newgen CFO
Outsourcing.
An economic entity's purpose is
to generate revenue.
The various activities performed
by the entity can be broadly
divided into revenue-generating
activities and non revenuegenerating activities.
The entity must focus on the
revenue-generating activities
and the same must resonate
with all the departments.
When processes are defined
within the accounting
department there are some
activities that are just for
reporting and audit purposes.
Lean accounting ensures that the
major focus is on revenuegenerating activities and the
other activities are either
reduced or made more efficient.
When the focus of the entire
department is towards a
common goal, the efficiency and
the results improve and help the
entity grow.
Reducing time-consuming and
non-essential practices helps the
department focus on the
essential and revenuegenerating activities.
7
