Michael Baker, a senior staff accountant at Georgia Biomass, LLC, discusses the role of accountants beyond just keeping financial records. Accountants serve as record keepers, analysts, auditors, and advisors who help leadership understand financial data and develop courses of action. Accountants must work closely with various departments like purchasing, sales, operations and maintenance, logistics, and human resources since their activities all impact the accountant's role. Purchasing, sales, operations and maintenance, logistics, and human resources are key areas that accountants partner with to establish controls, classify expenses, forecast budgets, and ensure regulatory compliance across the organization.
2. The Accountant as Business Partner
Considering the Accountant’s Role
Beyond the Ledger
3. What Accountants Do
Record Keeper-Financial, Tax and Performance Data
Analyst- Help Leadership Understand What the Data Means
Auditor-Reviews for Accuracy and Compliance
Advisor-Helps to Develop Courses of Action
4. *All the numbers developed by business operations are important.
*Often They are generated by more than just the accountants.
*Every element of the operation develops financially relevant data.
*In today’s integrated business environment every activity impacts the job of
the Accountant.
Everyone Loves Accounting!
If Anyone Ever Says Accounting Doesn’t Need to
Know….
ACCOUNTING NEEDS TO KNOW!!!
5. Areas That Work Closely With Accounting
Purchasing
Purchasing. “The Problem Starts with P”
Purchasing is a key business partner to Accounting in every business.
A good purchasing system can make your controls and processes run very
smoothly and can make your forecasting process much more accurate.
A bad purchasing process exposes the company to improperly approved
spending and reporting “Surprises”
Accounting should work very closely with Purchasing to establish key spending
and control guidelines.
• Controls
• Classifications
6. Sales. “Just get the sale done, we’ll do the paperwork later.”
Sales makes the money. Without Sales, there is nothing to account for!
Accounting can act as a good partner by helping with following processes, because Sales
is often RESULTS driven with the “details” being second.
Accounting helps Sales by making sure the processes are complete and results are clearly
understood.
• Forecasts
• Product Costs
• Sales Results
Areas That Work Closely With Accounting
Sales
7. Areas That Work Closely With Accounting
Operations and Maintenance
Operations and Maintenance. “Git ‘er Done!”
For manufacturing businesses, Maintenance is usually one of the top 5 controllable
expenses.
Accounting, Purchasing, and O&M work together to properly develop controls and
processes to help properly forecast and control spending.
This area can be the source many unplanned expenses if there is not an understanding
and agreement of how budgets and purchasing can help with planning.
It is important that the Accountant or Accountants listen to what is going on around the
facility in regards to projects that may impact maintenance spending.
• Labor Costs
• Materials Costs
• Contractor Costs
8. Areas That Work Closely With Accounting
Logistics
Logistics. ”Ship ‘em all!”
There is always a sense of urgency when it comes to moving materials anywhere
in the supply chain. Its always “In a Hurry”.
Short product lives and Just in Time Inventory keep pressure on the logistics chain.
This is a huge cost area for manufacturing and retail businesses.
• Costs
• Approvals
• Contract and Tax Compliance
9. Areas That Work Closely With Accounting
Human Resources
Human Resources. ”Our Employees are Our Greatest Resource”
Employee costs are material for most busiesses. For many service and
technology companies, employee costs are one of their top expenses.
For HR, its important that there is visibility to overtime costs, potential increases
in employee insurance costs, and proper authorization of salary and fringe
benefit related payouts.
• Salaries
• Fringe Benefit Costs
10. Accounting is Everyone’s Partner for Success
Accounting
Sales
Purchasing
O&MLogistics
Human
Resources
11. Thanks for Your Time
Michael C. Baker
Georgia Biomass, LLC
Member
Savannah Chapter IMA