The importance of cost accounting

Running any business requires immense responsibility. In a company, managers need to know the logistics of every department, from the cost of a box of paper clips to the biggest deal made, in order to run it successfully. Managers who aren’t very involved with their company’s finances don’t usually do well. The ultimate goal is to make a profit by eliminating unnecessary costs. In order to make an analysis of this, cost accounting comes into play.

Cost accounting is one of the different types of ‘accounting’ systems that fall under management accounting. It is a system that has been developed to provide managers with a structure to examine the day-to-day finances of the company, while not having tax factors to worry about. From the information gathered, managers can make decisions on where to cut costs to improve the company’s profitability. Cost accounting doesn’t follow any specific standards, such as the GAAP (Generally Accepted Accounting Principles), as it is not used for external purposes.

There are other types of managerial approaches to accounting, such as:

  • lean accounting
  • activity-based accounting
  • resource consumption accounting
  • throughput accounting
  • marginal costing, also known as cost-volume-profit analysis

At QuickBooks, we provide a cost accounting system to help managers keep control over the daily finances and be closely involved in almost every aspect of the business. Another advantage of our cost accounting software is that you can keep up-to-date with business transactions and recordings and identify mistakes quickly. This way, you can prevent problems from reoccurring. Unlike a monthly statement, you are able to monitor all financial aspects of your business on a day-to-day basis and by doing so, you don’t have to wait for the next month to implement new systems.

Cost accounting software from QuickBooks

Don’t stress yourself with papers and hiring costly accountants, use QuickBooks for an easy-to-use accounting solution. Know your business back-to-front and use QuickBooks accounting software to keep a record of all of your company’s expenses. No training is needed to use our cost accounting software, as our tutorials will teach you how to use our programs effectively. For cost accounting software that makes handling your accounts fast, and easy, use QuickBooks for an accounting assistant that provides for your every accounting need.

QuickBooks offers a simple way to do cost accounting with our range of accounting software packages, including SimpleStart, Pro and Premier packages. Find out more about our various packages to see which one best suits your company. Contact QuickBooks for effective cost accounting software and make handling your business accounts as smooth as possible.