For Consultants and
CPA Firm Advisory Services
There have been major advances in the field of managerial costing over the past 30 years, but the adoption rate of these new costing approaches has been slow. Most organizations continue to use traditional, century-old cost accounting practices that were developed to reflect the operation of early to mid-20th Century businesses to measure and manage costs in much more complex and dynamic 21st Century organizations.
This creates an opportunity for consultants and advisory practices in CPA firms to provide their clients with significant, value-adding services by guiding them through the adoption of managerial costing practices that more closely reflect their clients’ fundamental economics that underlie their organizations. Combined with revenue management principles, this will provide clients with the accurate and relevant business processes, product, service line, channel, and customer cost information they need to make well-informed pricing, capital investment, outsourcing, operational and other critical management decisions. This will enhance their client’s ability to survive and grow in today’s highly competitive, worldwide marketplace. Clients will gain valuable insights to their problems and opportunities to improve their performance. Arguably more important their line managers, who are currently underserved by their CFO, will be provided with the quality cost information they need and deserve, but have heretofore been denied, to aid them in making effective business decisions.
This website provides resources and tools that can aid consultants in providing these services as well as in educating and motivating their clients to be more receptive to adopting 21st Century managerial costing and revenue management practices.
Providing such services is particularly relevant to CPA firms as their audit services continue to become a low-priced commodity (and automated), and they must consider expanding their advisory services to sustain their firm’s revenues and financial viability.
The Profitability Analytics Center of Excellence aspires to help consultants, management accountants and the broader business community recognize and understand the need, the benefits, and a path forward for improving cost and revenue information for internal decision support.