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Âncora 5
There is a lot of talk about entrepreneurship, but few understand the real complexity of this task. The multiple skills required and the commitments assumed can transform this experience into a task of great responsibility and little return.
The need to divide attention between so many places complicates understanding and thinking about the business as a whole, to the point of affecting the company's viability.
Without being aware of the real situation, every time a decision is made, you give up control over your chances of making a profit.
Those who are in charge of the business are constantly faced with complex issues such as:
Should I hire another employee?
Should I invest in another machine for production?
Why did this month's efficiency drop so much?
Why did direct labor expenses increase?
What allocation criteria are used in the factory's indirect centers?
The task of looking at your business’s numbers is not always easy. Companies that grow without structured planning can develop bad habits that end up becoming obstacles in the pursuit of profit. To avoid or escape this trap, you need to be committed to identifying and resolving these bottlenecks definitively.
EVERY TIME YOU TAKE ACTION WITHOUT UNDERSTANDING THE FULL SITUATION,
YOU ARE MAKING A BET COUNTING ONLY ON LUCK.
Large companies have a Cost Department focused on managing production centers and seeking better ways to improve performance. Monitoring factory efficiency, expenses and identifying indicators will help managers when making decisions.
I worked in medium and large companies for 25 years (learn more here). During that time, I learned the importance and value of the sector, which is one of the main factors that allow a business to grow in a healthy way. Today, my desire is to share the experience I acquired in these companies with those who need it most.
Over the years, I have realized that, for various reasons, most small and medium-sized companies end up neglecting this sector and eventually experience difficulties.
These could have been easily avoided by knowing the real manufacturing performance and cost of each product, thus increasing your profit margin. Even if this means continuing with what you were doing, measuring success allows you to know where you are getting it right and if there is room for improvement or expansion.
This is what I do: I help those who are in charge of the business to understand the company's real performance, with all professionalism, commitment and ethics. Thus, enabling the necessary adjustments to increase profits.
Âncora 1
COMMON CASES
THE COST OF THE PRODUCT IS NOT KNOWN,
HOWEVER THE MARKET PRICE IS ALREADY DEFINED.
When we do not know the cost of the product and the market price has already been set, there is a great risk of paying to sell. This is because the sales price may not be covering the fixed or variable costs, resulting in losses for the company. Sometimes, the inclusion of a new product in production generates a negative monthly result for the company.
When we have several products on offer and we do not know the real cost of each one, we may have one or more products that end up reducing the profit in the revenue mix. By knowing the individual cost of each one and the return each one brings, we can better negotiate their price and find solutions to reduce the amounts spent.
MANUFACTURING EFFICIENCY
When manufacturing efficiency is not known, the company may suffer losses. We must carefully evaluate the effectiveness of each sector. Sectors must be efficient according to their resources and must always seek to improve in order to guarantee quality production, respecting deadlines and keeping costs to a minimum .
It is important to measure this efficiency and seek, together with management, ways of continuous improvements, providing support for decision-making.
INVENTORY CONTROL
Inventory control is important because the cost of goods sold is calculated using the formula:
CPV = EI + CO - EF
being:
EI: Initial Stock I CO: Purchases I EF: Final Stock.
So, if the inventory variation is negative, this means that there was more consumption. If the revenue was the same as the previous month, and consumption was higher, the contribution margin will certainly be lower, which is not at all favorable.
In this work, the idea is to start from an ideal stock and value the production orders, making a comparison between the standard cost (what it was designed to be) and the real cost (what is happening), and thus, ask the pertinent questions:
Why did the actual cost vary from the standard?
Which one is correct?
What am I using to calculate my selling price?
etc.
Âncora 2
HOW I WORK
I offer my services so that small and medium-sized companies know the costs of their products and can keep their data updated and integrated.
When working with your company, I will seek information that will allow us to discover your real production cost, presenting at the end the income statement (Management Income Statement) to measure the company's performance.
With the diagnosis in hand, the company will be able to ask the right questions so that its product can generate more profit in the current market. It will be able to implement much more assertive measures in search of its success.
Furthermore, the union of ERP and accounting will allow the same information to be worked on, thus making the workforce more efficient and avoiding the waste of energy that multiple control spreadsheets can generate.
Integrating costs with accounting provides reliable results that are generally known to everyone. Therefore, when an accounting entry is made, it is possible to know whether the cost will have positive or negative consequences on profit.
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MY PROFESSIONAL HISTORY
Born in Caxias do Sul/RS, I am an accounting technician, graduated in Economics and postgraduate in MBA in Controlling and Cost Accounting.
I have worked in the main industries of Caxias do Sul and the surrounding region, as well as in trade and service companies, in the area of costs and management in controlling. I have over 20 years of experience in the area.
Âncora 4
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