Cost Accounting For Your Business in Bristol
MW Technical Operations offers professional cost accounting services for businesses in and around the Bristol area.
Cost accounting is a practice in which I will examine your financial records to analyse, summarise and help you understand what money you are spending on your business processes and products or services.
My analysis will help you to organise and control your costs to improve your cost efficiency. I can help highlight areas of wastage and where you can successfully cut back on costs – or even increase them to help improve efficiency.
The advantages of cost accounting
It is important for every business to remain in control of its costs, and that management knows exactly where money is being spent. My cost analysis will enable you to cost out your product or service so you can set a realistic selling price without compromising on quality and maximising profitability.
When you are in full control of your costs it can help you formulate your business policies, and your management team can develop better techniques to help control costs, avoid wastage and boost productivity.
For a manufacturing company, for example, cost accounting will allow you to determine the total cost per product unit. This means that you can fix a realistic selling price that covers the cost of manufacture and delivers a decent profit.
My cost accounting services can also help service businesses to cost out their service delivery, which can vary greatly compared to a product manufacturing company.
One of the main inefficiencies in any business is poor time management. My cost accounting can highlight your profitable and non-profitable activities and business processes.
My analysis can help your management team to streamline your business processes to eliminate non-profitable activities while enhancing the more profitable ones to boost efficiency and productivity.
The cost sheets I will prepare for you will enable you to compare your costs over time. This can be a useful tool if you run a seasonal business, and can also help you compare the costs of one quarter to another, or the same quarter in the previous year.
What is the difference between cost accounting and financial accounting?
I am often asked about the difference between my cost accounting services and regular financial accounting services. Firstly, both accounting methods will use the same financial information from your business, and will also work using the same accounting principles.
However, the major difference between the two disciplines is that regular financial accounting looks at the value of profit and loss from your business as a whole. But cost accounting drills down much further and will give you valuable information such as the cost per item as well a the profit or loss associated with your product, or the breakdown of costs and profit and loss for the delivery of your service.
Using my cost accounting services will give you a deep dive into all the elements of costs to your business, such as material, labour, and business expenses. But each element will be further broken down into direct and indirect costs.
Cost accounting is important for many aspects of running a successful business, including your management team, staff, and end customers. While cost accounting and financial accounting are intertwined, they provide you with different results.