What your accountant didn't tell you, why you're making unnecessary losses and what you can do about it
Products, services, customers, and projects must be profitable for your company to make profits, right?
Actually, completely wrong.
Yes, I know you spent a fortune on an MBA and this is what you were taught by your rock-star finance prof.
And, yes, I know everyone all over the world is using the same techniques to assess profitable products, services, customers, projects, and investments. I've seen it pretty much everywhere I've worked between China in the East to America in the West.
But just because everyone is doing it, it doesn't mean they're right.
Remember how popular smoking used to be?
Remember everyone used to think the sun went around the world?
Yep. They were all wrong.
But they all believed they were right.
And acted accordingly...
And some paid a VERY high price for their 'beliefs'.
Well, guess what?
The approach you use in your business - to make a huge variety of day-to-day management decisions - is wrong.
Not just any old 'wrong'.
Fundamentally - IRRETRIEVABLY FLAWED - wrong.
And it has been for almost a hundred years now.
Your accountant told you to do it that way, you say?
Your corporate insists you do it this way?
Your ERP system is programmed to do it this way?
And don't even mention Activity Based Costing... talk about deck chairs on the Titanic!
Yeah, well, I'll let you into a secret...
The management accounting profession has been debating this issue since the early 1980s AT LEAST!
THEY'VE KNOWN FOR OVER FORTY YEARS CONVENTIONAL MANAGEMENT ACCOUNTING - THE PROCESS YOU USE TO MAKE MANAGEMENT DECISIONS WHETHER YOU TRAINED AS AN ACCOUNTANT OR NOT - WAS FUNDAMENTALLY FLAWED.
So, your accountant either didn't know what their colleagues in the profession were talking about or they just didn't tell you.
Didn't you ever wonder why they always asked you what you need the data for?
Didn't you ever wonder why sometimes you thought you were going to make a profit but made a loss?
Did you ever think you were making a loss on a job but turned in a profit?
Didn't you ever say, 'To hell with it, we need the work!' and take the 'lousy job' on anyway?
Wasn't that a clue that something was really, badly wrong?
Well, despite 'retiring' from consulting (I've had more offers of work in the last three months than I did in the previous two years!) some friends have persuaded me to host a ONE OFF, NEVER TO BE REPEATED webinar that explains how we got into this sorry state and what you can start to do about it.
The webinar will be based on a shortened version of a successful process I've used with clients on many occasions and will cover the following:
- Why conventional management accounting doesn't work anymore
- Why it WILL result in you making decisions that make you LESS profit or even a LOSS
- Why Throughput Accounting will completely change your perspective on business
- Practical changes that you can start to make to your business to improve decision-making and performance
The webinar starts on the 29th January at 08:00UK.
THE BIG CATCH
There is a small fee to attend the webinar.
This isn't to pay for my time or the prep or anything else. It's far too low for that.
It's simply for this reason: I officially - supposedly! - retired from consulting. Or, at least I thought so! So, if I'm going to do this I want people attending who are serious about USING this stuff.
I don't want those people who sign up for a free webinar and then don't attend. Or, sit through the webinar and do nothing with what they've learned. None of the idle curious need bother, thanks.
Just serious people. People who want better results.
And actually DO STUFF AFTERWARDS.
So, for that reason, the fee to attend is a nominal amount of £99 +VAT per person. Affordable, not a fortune, but just enough to be a little reminder that what you're going to learn could change your business and career pretty spectacularly, and you should pay attention and make it worth your while.
If you are a serious person intent on improving your career and your business's performance, click here and fill out the form.