Implementation of management accounting
The problem in the company: Lack of control over project finances and profitability
The company’s rapid growth exposed significant financial and project management challenges:
- Lack of visibility into individual project profitability, making it difficult to decide whether to continue or scale back certain initiatives.
- Recurring liquidity problems, resulting in difficulties covering current liabilities.
- Opaque fixed cost structure, preventing effective control and optimization.
Solution: Comprehensive implementation of management accounting in a service company
The company decided to partner with an expert who implemented effective financial management tools and improved control over project profitability. The objective was to increase financial transparency, improve liquidity, and reduce the burden on management in daily decision-making.
Implementation stages:
- Diagnosis and problem analysis
- A financial and project management audit revealed a lack of oversight over project profitability and the absence of tools to monitor cash flows and key financial indicators.
- Action plan and changes implementation
- Revenue and cost segmentation – Revenues and fixed costs were categorized, allowing the identification of the most profitable areas of the business.
- Financial management tools – A system was developed to monitor key financial data (revenues, costs, EBIT, net profit) broken down by month.
- Project profitability control system – Tools were created for ongoing monitoring of costs and margins for each project, enabling rapid detection of discrepancies.
- Cash flow management system – Allowed real-time control and planning of receivables and payables, improving financial liquidity.
Effects of implementing management accounting in a company
✅ Improved project profitability – Ongoing budget and cost control allowed for quick identification and elimination of inefficient activities.
✅ Optimized fixed costs – Clear cost allocation enabled better cost management and more accurate offer pricing, resulting in higher margins.
✅ Enhanced financial management – Monthly management meetings based on reliable financial data led to more informed strategic and operational decisions.
✅ Identified best practices – Project analysis highlighted which managers delivered the best results, enabling the organization to adopt effective practices company-wide.
Why is management accounting crucial?
Research shows that loss of financial liquidity is one of the main causes of business failures. Without the right tools to monitor finances and profitability, it becomes nearly impossible to make informed decisions, leaving the company vulnerable to risks. Implementing management accounting not only helps address current issues, but also enables you to plan for growth based on real data.
Your business can run more efficiently too - management accounting in the company
If your company lacks financial transparency and controlling projects and costs is a challenge, Mariusz Prusiel can help you regain control over your finances and increase your business’s profitability.
📞 Contact me today to see how implementing management accounting can improve your company’s results.
Industry :
Design services
Number of employees :
~60 people
Duration :
6 months
Contact me
Do you need support in project management, finances, processes or preparing your company for growth? Write, call or leave a message – together we will find a solution.
