The philosophy of GMP (Good Manufacturing Practice) in running an accounting practice

The world of manufacturing has taught me so much more than just numbers, reports, and financials. While I no longer have as much time to walk the factory floor and observe the heartbeat of business enterprise first hand, the mindset and experience I’ve built over decades continue to shape how I choose to run an accounting practice. Manufacturing operates under the philosophy of Good Manufacturing Practice (GMP) — a disciplined approach built around consistency, quality, and strong systems. The more I reflect on it, the more I feel these principles apply just as well to professional services, including accounting. The experts in the field
Manufacturing is an enterprise that operates across multiple fields and disciplines. Many of these areas require specialised knowledge and skills to perform effectively. While people can sometimes cross-train in different factory roles, it is generally expected that those who sign up for the job already possess a strong level of proficiency. In the same way, I don’t want to build a team of “jack of all trades,” but rather a team of experts. An expert serving mum and dad business should have balanced knowledge and skills sets across bookkeeping, statutory compliance and tax advisory. A strong background in supply chain finance should serve industrial clients’ needs in streamlining accounting process, optimising working capital and delivering savings across supply chain networks. A finance partner should be a true leader and mentor, turns financial data into insight and strategy, helping the business make confident, informed decisions. Just like each manufacturing workbench configured for its intended purpose, I want to build an A-team of specialists, so clients can be assured they are dealing with one of the best, if not the best. DIFOT (Delivery In Full On Time)
Delivery In Full and On Time (DIFOT) is crucial in measuring customer satisfaction in manufacturing. When customers receive what they need, in full and on time, they are more likely to return and place another order because of a positive experience. A good accounting practice is not so different. Strong client relationships are built through consistency in service standards and the quality of work delivered. Meeting deadlines and delivering promised services in a timely manner is just as important in accounting. It is not only about meeting statutory compliance deadlines, but also about meeting or even exceeding client expectations. Trust can only be built gradually through reliability and consistency over time. Structured production process
One thing I love about manufacturing is its structured system. It is thoughtful, planned, disciplined, and process focused. When an order is placed, the production planner schedules the job and assigns machinery and manpower to produce goods in conformance with quality standards.
Running an accounting practice means receiving hundreds, if not thousands, of emails and requests from clients. Building a system to sort, allocate, and assign work to the right person makes the process far more streamlined and efficient. Each team expert will handle queries that match their skills and experience. At times, one expert may be inundated with work and struggling with capacity constraints, while others may be on leave. The lesson I have learned from manufacturing is the importance of always having a Plan B when things do not go as expected. At the end of the day, running an accounting practice is not only about compliance, reports, or getting the numbers right. It is about building trust, delivering consistent quality, and supporting clients through every stage of their business journey. By building a team of experts, delivering work reliably and on time, creating efficient systems, and embracing the technologies for quality control, I hope to run an accounting practice that feels reliable, thoughtful, and genuinely valuable to clients. Just like in manufacturing, quality does not happen by accident. It is designed into the way we work, every day

EOFY Stocktake for Manufacturing Business

A Moment of Truth For many manufacturing businesses, year-end stocktake is a crucial moment when they start to uncover mysteries that neither human nor technology can explain over the past 12 months. Stocktake is far more than merely counting inventory on last day of financial year. Accountants must deal with aftermath that arise from unfavoured outcomes, such as writing off stock that does not exist or over 12 months old (SECT 70.50 ITAA97). However, stocktake also provides an opportunity to reflect and examine issues within the supply chain operation. Overstocking is detrimental, but why? Identifying the root cause—whether it is a flawed process procedure or a system error caused by human mistakes—is essential. Conversely, understocking does not necessarily warrant early celebration. Is the business delaying order fulfillment? Are accounts put on hold causing delays in receiving goods? Has the business adopted a systematic and proactive approach to managing cash flow? Inventory constitutes a significant portion of a manufacturing business's working capital. It is crucial not only to count what is on hand but more importantly to adopt a holistic approach to identify and action on discrepancies by implementing changes across supply chains. Be honest and work smart Stocktake requires coordinated effort between production and accounts/system teams. Those responsible for counting stock should familiarize themselves with the location and bin before walking through warehouse door. It is vital to follow the count sheet rather than relying on prior knowledge of where stock might be located. If it is not found in its expected place, any oversight in stock transfer needs rectification later. When dealing with consumables such as nuts, bolts, and rivets, using weight measurement is a more sensible and practical way of counting. Including every single unit in the Billing of Materials (BOM) does not necessitate individual counting due to potential inaccuracies and unjustifiable time expenditure compared to minor dollar discrepancies. Recounting should only be considered for significant discrepancies, as most discrepancies are due to system recording errors. Leave it to data experts for a diagnose to find root causes before taking corrective action. Keep It Simple A full count can be cumbersome due to the required time and resources. Businesses should consider minimize Work in Process (WIP) prior to count and avoid dispatching and receiving goods on the stock count day. WIP items are inherently difficult to locate and measure, making them time-consuming to sight let alone count. Avoiding goods dispatch and receipt prevents warehouse distractions during stocktake. Finally, ensuring accurate Unit of Measures (UOMs) are listed on the count sheet along with applicable bin/lot numbers prevent human mistakes and make count more productive. I appreciate a moment of truth is worth the efforts for many manufacturing businesses. So, plan the big day ahead. Clarify and give clear instructions to team before count starts on the day. Coordinate with accounts/system for major discrepancies to determine if recount is required. Maybe cracking a few beers when things are done and dusted afterwards.

What to consider in ERP Implementation phases?

Most small-medium size businesses rely on resources from software vendor or reseller to prepare and execute ERP system rollout project. Whilst it works in terms of providing technical and product knowledge support, many times system is not designed and configured the way for its intended purpose. Some projects are steered to wrong direction because project team has limited industry knowledge, is lack of understanding of business process and can sometimes rush into project works without proper planning process. I have the opportunity to work for multiple ERP projects while working for business which enable me better understand business requirement and carry project works that align with plan and baselines. If your business is embarking an ERP rollout journey, below are main things I recommend that you should consider at each implementation phase. 1.Collect requirement and establish business case Why you need a new system? What is the major issue that drive your decision to switch (if you have one)? What you expect new system to achieve? E.g., integration, streamline process, consolidation, support business growth? Can you achieve similar if not better outcome without introducing new system? System implementation is time consuming and costly so I always ask questions about what we can do to modify existing processes/procedures to achieve similar outcomes without reinventing the wheels 2.Scoping and planning Define project works Plan work schedule Acquire and assign resource to fulfil project works It might surprise you but the fact lots of project works are carried by internal business resources rather than external consultant means more spending on time and $$$. Regardless, business need to find people with the right knowledge and skillset to ensure a successful project execution. 3.Design and configuration What is your configuration approach? E.g., Do we configure base on system’s standardised design and fine tune later to deal with changes or do we need customization now to accommodate business process needs What is implication of different design and configuration on budget and time Be really careful how you want to configure system. Many ERP projects end up with endless customizations that led to delay on entire project. Always look at the big picture. 4.UAT (User Acceptance Testing) Make sure you get as many users involves as possible because only user can provide constructive feedbacks on testing result. Not the tester, not the consultant. Incorporate most training session in UAT phase so that not only user can develop system knowledge but get some hands-on working experiences of system as well. Run UAT that bases on best case and worst-case scenarios so that business understands risks and opportunities that associate with different test results. Expect the unexpected. The more tests you have done, the more you are able to uncover risks associated with test results and the better you are able to manage risk through risk management plan. 5.Data migration Give a good clean of the data. Seek help from consultant if you are not capable of running importation process. Always load data in test environment first. I wrote a article about data migration and you can refer below for more information. https://transformationinthecloud.com/blog/erp-system-data-migration-checklist 6.Go-Live Run a simulation to validate all test results before Go-Live. HAVE A GOOD SLEEP the day before GO-Live. You have come a long way to get to this point. Congratulations! Business often has the impression that ERP project conclude in Go-Live. On the contrary, many customizations work start only after business operates under new system environment as more process needs are uncovered. Best wish for your next system roll-out project and have fun!

Cash flow management process 101

There has never been a more crucial time for SMEs to understand and manage cash flow position to navigate business through this challenging and uncertain times. There are bucket load of tools and software available in the market that offer cash flow management solutions. But those that work well rely on a robust cash flow management process which is what I am going to share with like-minded you. I have been able to adopt project management methodology to build cash flow model for many years and the three stage management processes involve planning, executing and controlling. The integrated process not only provide guideline for those who wants to build cash flow model from scratch, it also establishes a robust system to effectively manage and control cash flow model to achieve financial goals. Below are key things to do at each process stage to build up a generic cash flow model before starting to fine tune to meet individual business needs. Planning: First and foremost, make sure bank reconciliation is up to date. You can’t manage cash flow without having correct bank balance in the book. Break up historical cash inflow activities into below categories when they are applicable: Cash Merchant bank settlement (i.e. EFTPOS) Online payment settlement (i.e. Paypal, Stripe, Amazon) Debtor collection (i.e. customers on credit term) One-off (i.e. JobKeeper, cashflow boost) ATO Refund (i.e. GST, income tax) Intercompany loan Break up historical cash outflow activities into below categories when they are applicable: ATO Compliance (i.e. BAS, IAS, PAYG income tax) Payroll (i.e. Wages& Salaries, Super, Payroll tax, WC) Payment on goods sold (i.e. payment to supplier) Overhead (i.e. rent, utilities, insurance) Loan repayment (i.e. lease, equipment loan, overdraft facilities, credit card) Other routine payment such as payment to contractors Intercompany loan Executing: Collate above data through ERP/financial system. There are various ways to extract them depending on system business use. Most activities appear in different transaction types whereby you can readily recognise. For instance, “pay supplier” record payment to trade creditors whereas “manual payment” could be a direct debit for loan repayment. You may want to update cash flow model on a daily, weekly, or monthly cycle that suit business needs. But it is important to align it with payment term. For instance, monthly cash model is perhaps a better option when your collection and cheque run occurs once every month. Assumption log- are you anticipating new contract, product launch or new business that result in additional money in? Are you planning to have another round of capital raise? How likely and when these events are going to occur? Risk assessment- identify risks that negatively affect cash flow position. e.g. bad debt, product recall, slow moving stock Factor historical movement, assumption, risk assessment all into cash flow forecast model Establish and agree on cash flow base line (i.e. target) from cash flow forecast model Controlling: Review categories in forecast model and create new category if needed Continuously review and assess assumption logs and risks and reflect them in forecast model accordingly Compare historical cash flow movement against forecast model to measure accuracy Identify ways and to shorten collection days, stock turnover, as well as to extend payment days when possible. Action on working capital improvement initiatives Measure forecast model against cash flow baseline to ensure financial target is met I hope some if not all above are able to jump start your business cash flow management process. If you like to know more about how to mange cash flow or things I can be of assistance, please feel free to contact me or leave a comment below.

From Theory to Strategy: Using Costing for Real-Time Business Decisions

A client recently asked me what standard costing and average costing are, and why these methods matter to a business. The first part is easy for AI to answer; the second part has a more practical truth: costing matters only if it works for your business model. Different costing methods give businesses the ability to estimate product costs in ways that support strategic commercial decisions. In today’s global supply-chain environment, variables such as import duties, freight costs, and foreign exchange movements significantly influence pricing strategies and flow directly through to the financial bottom line. For manufacturers with large overhead pools, it is essential to allocate those overheads across hundreds of active SKUs. This enables ongoing review and realignment of procurement and resource planning so the business can capitalise on the SKUs performing strongest in the market. In many businesses I’ve worked with, the 80/20 rule holds true — around 20% of SKUs generate 80% of the revenue. Those top-performing SKUs are the gold that warrant deeper insights so that resources can be directed to maximise return on investment., Dynamic pricing strategies rely on a robust costing system capable of capturing supply-chain costs in real time. The old practice of rolling up standard costs every 12 months is no longer useful in industries where prices can swing dramatically — for example, fresh produce like truss tomatoes price quadrupled before roller coaster back to record low price within a year. Whilst it is a no brainer to add or remove it from everyday shopping list from time to time to save money on household budget, it maybe not be that simple for Master Foods, for example or business rely on it as a key ingredient to produce condiment for that matter. In such cases, standard cost becomes obsolete and is no longer relevant when implementing changes to respond to material price hike. Average costing further distorts reality by smoothing fluctuations that businesses need to see. What businesses need today is the ability to track cost-of-sales movements in real time and stay alert to volatility as trading conditions shift. So rather than getting overly focused on the theoretical side of cost accounting, the more important question is: What business intelligence is critical for your operation, and do you have access to clear, actionable insights that allow you to pivot quickly in response to market changes?

The Future Role of Accounting: Lessons from a Golf Swing

When I first started practising my golf swing, I was completely fixated on the ball. My eyes stayed glued to the target, and my mind was obsessed with hitting it as hard as possible. The result? Balls flying in every direction, rarely travelling more than 50 yards — no matter how much effort I put in. It took time for me to realise an important lesson: the outcome has far less to do with the ball itself, and far more to do with posture, positioning, and — most importantly — the quality of the swing. When the swing is right, the ball naturally follows the intended path. This lesson applies surprisingly well to the role of accounting in business. Traditionally, the accounts’ function has focused heavily on “the ball” — collecting data, analysing results, measuring performance, and explaining why outcomes deviated from expectations. In this sense, accountants have often been seen as scorekeepers: reporting on where the ball landed, how fast it travelled, and whether it hit the target. Meanwhile, the “swing” — the decisions, behaviours, and processes that drive results — is often left oversight or slipped under the radar. As a result, accounting has long been viewed as a support or compliance function rather than a driver of performance. An outdated view Accounting is uniquely positioned to become a true business partner. Unlike any other function, accountants have an overarching view of the entire organisation — sales and marketing, operations, warehousing, customer service, R&D, and more — all reflected in one set of numbers. This holistic perspective enables accounting professionals to connect the dots and translate financial data into actionable insights. Numbers, after all, are just numbers until they become intelligence The role of accounting should not end when reports and financial statements are published. In fact, that’s where the real work should begin. Like a golfer refining their swing, modern accountants should engage with stakeholders across the business to explain not just what happened, but why it happened — and what can be done differently to improve future outcomes. By presenting financial information through a clear cause-and-effect lens, accountants help create accountability, encourage better decision-making, and support meaningful change across departments. Understanding what truly drives financial performance is now a critical skill for accounting professionals. With AI and new technologies increasingly taking over transactional and compliance tasks, the real value of accounting lies in its advisory role — partnering with business leaders to influence strategy, improve execution, and achieve the next 200- or 300-yard shot. In the future, the most valuable accountants won’t just tell you where the ball landed — they’ll help you perfect the swing.

The philosophy of GMP (Good Manufacturing Practice) in running an accounting practice

The world of manufacturing has taught me so much more than just numbers, reports, and financials. While I no longer have as much time to walk the factory floor and observe the heartbeat of business enterprise first hand, the mindset and experience I’ve built over decades continue to shape how I choose to run an accounting practice. Manufacturing operates under the philosophy of Good Manufacturing Practice (GMP) — a disciplined approach built around consistency, quality, and strong systems. The more I reflect on it, the more I feel these principles apply just as well to professional services, including accounting. The experts in the field
Manufacturing is an enterprise that operates across multiple fields and disciplines. Many of these areas require specialised knowledge and skills to perform effectively. While people can sometimes cross-train in different factory roles, it is generally expected that those who sign up for the job already possess a strong level of proficiency. In the same way, I don’t want to build a team of “jack of all trades,” but rather a team of experts. An expert serving mum and dad business should have balanced knowledge and skills sets across bookkeeping, statutory compliance and tax advisory. A strong background in supply chain finance should serve industrial clients’ needs in streamlining accounting process, optimising working capital and delivering savings across supply chain networks. A finance partner should be a true leader and mentor, turns financial data into insight and strategy, helping the business make confident, informed decisions. Just like each manufacturing workbench configured for its intended purpose, I want to build an A-team of specialists, so clients can be assured they are dealing with one of the best, if not the best. DIFOT (Delivery In Full On Time)
Delivery In Full and On Time (DIFOT) is crucial in measuring customer satisfaction in manufacturing. When customers receive what they need, in full and on time, they are more likely to return and place another order because of a positive experience. A good accounting practice is not so different. Strong client relationships are built through consistency in service standards and the quality of work delivered. Meeting deadlines and delivering promised services in a timely manner is just as important in accounting. It is not only about meeting statutory compliance deadlines, but also about meeting or even exceeding client expectations. Trust can only be built gradually through reliability and consistency over time. Structured production process
One thing I love about manufacturing is its structured system. It is thoughtful, planned, disciplined, and process focused. When an order is placed, the production planner schedules the job and assigns machinery and manpower to produce goods in conformance with quality standards.
Running an accounting practice means receiving hundreds, if not thousands, of emails and requests from clients. Building a system to sort, allocate, and assign work to the right person makes the process far more streamlined and efficient. Each team expert will handle queries that match their skills and experience. At times, one expert may be inundated with work and struggling with capacity constraints, while others may be on leave. The lesson I have learned from manufacturing is the importance of always having a Plan B when things do not go as expected. At the end of the day, running an accounting practice is not only about compliance, reports, or getting the numbers right. It is about building trust, delivering consistent quality, and supporting clients through every stage of their business journey. By building a team of experts, delivering work reliably and on time, creating efficient systems, and embracing the technologies for quality control, I hope to run an accounting practice that feels reliable, thoughtful, and genuinely valuable to clients. Just like in manufacturing, quality does not happen by accident. It is designed into the way we work, every day

EOFY Stocktake for Manufacturing Business

A Moment of Truth For many manufacturing businesses, year-end stocktake is a crucial moment when they start to uncover mysteries that neither human nor technology can explain over the past 12 months. Stocktake is far more than merely counting inventory on last day of financial year. Accountants must deal with aftermath that arise from unfavoured outcomes, such as writing off stock that does not exist or over 12 months old (SECT 70.50 ITAA97). However, stocktake also provides an opportunity to reflect and examine issues within the supply chain operation. Overstocking is detrimental, but why? Identifying the root cause—whether it is a flawed process procedure or a system error caused by human mistakes—is essential. Conversely, understocking does not necessarily warrant early celebration. Is the business delaying order fulfillment? Are accounts put on hold causing delays in receiving goods? Has the business adopted a systematic and proactive approach to managing cash flow? Inventory constitutes a significant portion of a manufacturing business's working capital. It is crucial not only to count what is on hand but more importantly to adopt a holistic approach to identify and action on discrepancies by implementing changes across supply chains. Be honest and work smart Stocktake requires coordinated effort between production and accounts/system teams. Those responsible for counting stock should familiarize themselves with the location and bin before walking through warehouse door. It is vital to follow the count sheet rather than relying on prior knowledge of where stock might be located. If it is not found in its expected place, any oversight in stock transfer needs rectification later. When dealing with consumables such as nuts, bolts, and rivets, using weight measurement is a more sensible and practical way of counting. Including every single unit in the Billing of Materials (BOM) does not necessitate individual counting due to potential inaccuracies and unjustifiable time expenditure compared to minor dollar discrepancies. Recounting should only be considered for significant discrepancies, as most discrepancies are due to system recording errors. Leave it to data experts for a diagnose to find root causes before taking corrective action. Keep It Simple A full count can be cumbersome due to the required time and resources. Businesses should consider minimize Work in Process (WIP) prior to count and avoid dispatching and receiving goods on the stock count day. WIP items are inherently difficult to locate and measure, making them time-consuming to sight let alone count. Avoiding goods dispatch and receipt prevents warehouse distractions during stocktake. Finally, ensuring accurate Unit of Measures (UOMs) are listed on the count sheet along with applicable bin/lot numbers prevent human mistakes and make count more productive. I appreciate a moment of truth is worth the efforts for many manufacturing businesses. So, plan the big day ahead. Clarify and give clear instructions to team before count starts on the day. Coordinate with accounts/system for major discrepancies to determine if recount is required. Maybe cracking a few beers when things are done and dusted afterwards.

What to consider in ERP Implementation phases?

Most small-medium size businesses rely on resources from software vendor or reseller to prepare and execute ERP system rollout project. Whilst it works in terms of providing technical and product knowledge support, many times system is not designed and configured the way for its intended purpose. Some projects are steered to wrong direction because project team has limited industry knowledge, is lack of understanding of business process and can sometimes rush into project works without proper planning process. I have the opportunity to work for multiple ERP projects while working for business which enable me better understand business requirement and carry project works that align with plan and baselines. If your business is embarking an ERP rollout journey, below are main things I recommend that you should consider at each implementation phase. 1.Collect requirement and establish business case Why you need a new system? What is the major issue that drive your decision to switch (if you have one)? What you expect new system to achieve? E.g., integration, streamline process, consolidation, support business growth? Can you achieve similar if not better outcome without introducing new system? System implementation is time consuming and costly so I always ask questions about what we can do to modify existing processes/procedures to achieve similar outcomes without reinventing the wheels 2.Scoping and planning Define project works Plan work schedule Acquire and assign resource to fulfil project works It might surprise you but the fact lots of project works are carried by internal business resources rather than external consultant means more spending on time and $$$. Regardless, business need to find people with the right knowledge and skillset to ensure a successful project execution. 3.Design and configuration What is your configuration approach? E.g., Do we configure base on system’s standardised design and fine tune later to deal with changes or do we need customization now to accommodate business process needs What is implication of different design and configuration on budget and time Be really careful how you want to configure system. Many ERP projects end up with endless customizations that led to delay on entire project. Always look at the big picture. 4.UAT (User Acceptance Testing) Make sure you get as many users involves as possible because only user can provide constructive feedbacks on testing result. Not the tester, not the consultant. Incorporate most training session in UAT phase so that not only user can develop system knowledge but get some hands-on working experiences of system as well. Run UAT that bases on best case and worst-case scenarios so that business understands risks and opportunities that associate with different test results. Expect the unexpected. The more tests you have done, the more you are able to uncover risks associated with test results and the better you are able to manage risk through risk management plan. 5.Data migration Give a good clean of the data. Seek help from consultant if you are not capable of running importation process. Always load data in test environment first. I wrote a article about data migration and you can refer below for more information. https://transformationinthecloud.com/blog/erp-system-data-migration-checklist 6.Go-Live Run a simulation to validate all test results before Go-Live. HAVE A GOOD SLEEP the day before GO-Live. You have come a long way to get to this point. Congratulations! Business often has the impression that ERP project conclude in Go-Live. On the contrary, many customizations work start only after business operates under new system environment as more process needs are uncovered. Best wish for your next system roll-out project and have fun!

Cash flow management process 101

There has never been a more crucial time for SMEs to understand and manage cash flow position to navigate business through this challenging and uncertain times. There are bucket load of tools and software available in the market that offer cash flow management solutions. But those that work well rely on a robust cash flow management process which is what I am going to share with like-minded you. I have been able to adopt project management methodology to build cash flow model for many years and the three stage management processes involve planning, executing and controlling. The integrated process not only provide guideline for those who wants to build cash flow model from scratch, it also establishes a robust system to effectively manage and control cash flow model to achieve financial goals. Below are key things to do at each process stage to build up a generic cash flow model before starting to fine tune to meet individual business needs. Planning: First and foremost, make sure bank reconciliation is up to date. You can’t manage cash flow without having correct bank balance in the book. Break up historical cash inflow activities into below categories when they are applicable: Cash Merchant bank settlement (i.e. EFTPOS) Online payment settlement (i.e. Paypal, Stripe, Amazon) Debtor collection (i.e. customers on credit term) One-off (i.e. JobKeeper, cashflow boost) ATO Refund (i.e. GST, income tax) Intercompany loan Break up historical cash outflow activities into below categories when they are applicable: ATO Compliance (i.e. BAS, IAS, PAYG income tax) Payroll (i.e. Wages& Salaries, Super, Payroll tax, WC) Payment on goods sold (i.e. payment to supplier) Overhead (i.e. rent, utilities, insurance) Loan repayment (i.e. lease, equipment loan, overdraft facilities, credit card) Other routine payment such as payment to contractors Intercompany loan Executing: Collate above data through ERP/financial system. There are various ways to extract them depending on system business use. Most activities appear in different transaction types whereby you can readily recognise. For instance, “pay supplier” record payment to trade creditors whereas “manual payment” could be a direct debit for loan repayment. You may want to update cash flow model on a daily, weekly, or monthly cycle that suit business needs. But it is important to align it with payment term. For instance, monthly cash model is perhaps a better option when your collection and cheque run occurs once every month. Assumption log- are you anticipating new contract, product launch or new business that result in additional money in? Are you planning to have another round of capital raise? How likely and when these events are going to occur? Risk assessment- identify risks that negatively affect cash flow position. e.g. bad debt, product recall, slow moving stock Factor historical movement, assumption, risk assessment all into cash flow forecast model Establish and agree on cash flow base line (i.e. target) from cash flow forecast model Controlling: Review categories in forecast model and create new category if needed Continuously review and assess assumption logs and risks and reflect them in forecast model accordingly Compare historical cash flow movement against forecast model to measure accuracy Identify ways and to shorten collection days, stock turnover, as well as to extend payment days when possible. Action on working capital improvement initiatives Measure forecast model against cash flow baseline to ensure financial target is met I hope some if not all above are able to jump start your business cash flow management process. If you like to know more about how to mange cash flow or things I can be of assistance, please feel free to contact me or leave a comment below.

From Theory to Strategy: Using Costing for Real-Time Business Decisions

A client recently asked me what standard costing and average costing are, and why these methods matter to a business. The first part is easy for AI to answer; the second part has a more practical truth: costing matters only if it works for your business model. Different costing methods give businesses the ability to estimate product costs in ways that support strategic commercial decisions. In today’s global supply-chain environment, variables such as import duties, freight costs, and foreign exchange movements significantly influence pricing strategies and flow directly through to the financial bottom line. For manufacturers with large overhead pools, it is essential to allocate those overheads across hundreds of active SKUs. This enables ongoing review and realignment of procurement and resource planning so the business can capitalise on the SKUs performing strongest in the market. In many businesses I’ve worked with, the 80/20 rule holds true — around 20% of SKUs generate 80% of the revenue. Those top-performing SKUs are the gold that warrant deeper insights so that resources can be directed to maximise return on investment., Dynamic pricing strategies rely on a robust costing system capable of capturing supply-chain costs in real time. The old practice of rolling up standard costs every 12 months is no longer useful in industries where prices can swing dramatically — for example, fresh produce like truss tomatoes price quadrupled before roller coaster back to record low price within a year. Whilst it is a no brainer to add or remove it from everyday shopping list from time to time to save money on household budget, it maybe not be that simple for Master Foods, for example or business rely on it as a key ingredient to produce condiment for that matter. In such cases, standard cost becomes obsolete and is no longer relevant when implementing changes to respond to material price hike. Average costing further distorts reality by smoothing fluctuations that businesses need to see. What businesses need today is the ability to track cost-of-sales movements in real time and stay alert to volatility as trading conditions shift. So rather than getting overly focused on the theoretical side of cost accounting, the more important question is: What business intelligence is critical for your operation, and do you have access to clear, actionable insights that allow you to pivot quickly in response to market changes?

The Future Role of Accounting: Lessons from a Golf Swing

When I first started practising my golf swing, I was completely fixated on the ball. My eyes stayed glued to the target, and my mind was obsessed with hitting it as hard as possible. The result? Balls flying in every direction, rarely travelling more than 50 yards — no matter how much effort I put in. It took time for me to realise an important lesson: the outcome has far less to do with the ball itself, and far more to do with posture, positioning, and — most importantly — the quality of the swing. When the swing is right, the ball naturally follows the intended path. This lesson applies surprisingly well to the role of accounting in business. Traditionally, the accounts’ function has focused heavily on “the ball” — collecting data, analysing results, measuring performance, and explaining why outcomes deviated from expectations. In this sense, accountants have often been seen as scorekeepers: reporting on where the ball landed, how fast it travelled, and whether it hit the target. Meanwhile, the “swing” — the decisions, behaviours, and processes that drive results — is often left oversight or slipped under the radar. As a result, accounting has long been viewed as a support or compliance function rather than a driver of performance. An outdated view Accounting is uniquely positioned to become a true business partner. Unlike any other function, accountants have an overarching view of the entire organisation — sales and marketing, operations, warehousing, customer service, R&D, and more — all reflected in one set of numbers. This holistic perspective enables accounting professionals to connect the dots and translate financial data into actionable insights. Numbers, after all, are just numbers until they become intelligence The role of accounting should not end when reports and financial statements are published. In fact, that’s where the real work should begin. Like a golfer refining their swing, modern accountants should engage with stakeholders across the business to explain not just what happened, but why it happened — and what can be done differently to improve future outcomes. By presenting financial information through a clear cause-and-effect lens, accountants help create accountability, encourage better decision-making, and support meaningful change across departments. Understanding what truly drives financial performance is now a critical skill for accounting professionals. With AI and new technologies increasingly taking over transactional and compliance tasks, the real value of accounting lies in its advisory role — partnering with business leaders to influence strategy, improve execution, and achieve the next 200- or 300-yard shot. In the future, the most valuable accountants won’t just tell you where the ball landed — they’ll help you perfect the swing.

The philosophy of GMP (Good Manufacturing Practice) in running an accounting practice

The world of manufacturing has taught me so much more than just numbers, reports, and financials. While I no longer have as much time to walk the factory floor and observe the heartbeat of business enterprise first hand, the mindset and experience I’ve built over decades continue to shape how I choose to run an accounting practice. Manufacturing operates under the philosophy of Good Manufacturing Practice (GMP) — a disciplined approach built around consistency, quality, and strong systems. The more I reflect on it, the more I feel these principles apply just as well to professional services, including accounting. The experts in the field
Manufacturing is an enterprise that operates across multiple fields and disciplines. Many of these areas require specialised knowledge and skills to perform effectively. While people can sometimes cross-train in different factory roles, it is generally expected that those who sign up for the job already possess a strong level of proficiency. In the same way, I don’t want to build a team of “jack of all trades,” but rather a team of experts. An expert serving mum and dad business should have balanced knowledge and skills sets across bookkeeping, statutory compliance and tax advisory. A strong background in supply chain finance should serve industrial clients’ needs in streamlining accounting process, optimising working capital and delivering savings across supply chain networks. A finance partner should be a true leader and mentor, turns financial data into insight and strategy, helping the business make confident, informed decisions. Just like each manufacturing workbench configured for its intended purpose, I want to build an A-team of specialists, so clients can be assured they are dealing with one of the best, if not the best. DIFOT (Delivery In Full On Time)
Delivery In Full and On Time (DIFOT) is crucial in measuring customer satisfaction in manufacturing. When customers receive what they need, in full and on time, they are more likely to return and place another order because of a positive experience. A good accounting practice is not so different. Strong client relationships are built through consistency in service standards and the quality of work delivered. Meeting deadlines and delivering promised services in a timely manner is just as important in accounting. It is not only about meeting statutory compliance deadlines, but also about meeting or even exceeding client expectations. Trust can only be built gradually through reliability and consistency over time. Structured production process
One thing I love about manufacturing is its structured system. It is thoughtful, planned, disciplined, and process focused. When an order is placed, the production planner schedules the job and assigns machinery and manpower to produce goods in conformance with quality standards.
Running an accounting practice means receiving hundreds, if not thousands, of emails and requests from clients. Building a system to sort, allocate, and assign work to the right person makes the process far more streamlined and efficient. Each team expert will handle queries that match their skills and experience. At times, one expert may be inundated with work and struggling with capacity constraints, while others may be on leave. The lesson I have learned from manufacturing is the importance of always having a Plan B when things do not go as expected. At the end of the day, running an accounting practice is not only about compliance, reports, or getting the numbers right. It is about building trust, delivering consistent quality, and supporting clients through every stage of their business journey. By building a team of experts, delivering work reliably and on time, creating efficient systems, and embracing the technologies for quality control, I hope to run an accounting practice that feels reliable, thoughtful, and genuinely valuable to clients. Just like in manufacturing, quality does not happen by accident. It is designed into the way we work, every day

Things we think matter to your businesses

EOFY Stocktake for Manufacturing Business