Cost Accounting Practices Consulting Solutions

Know your true costs

In the era of increasingly thin margins, fast and effective management of pricing policies is critical to your ability to prosper in your marketplace. The problem is trying to maintain a cost structure that reflects your current costs and productivity is often a tedious and overwhelming task.

Profectus' expert consultants can solve your cost accounting problems by providing a proven closed-loop approach for measuring your costs, establishing hourly cost rates, tuning your estimating and costing systems, recovering all of your expenses with sales, and determining your "True Costs". We provide insight to all of your costs and activities that impact your bottom-line.

Profectus' Cost Accounting Practices consultation includes a complete analysis of the following:
	Cost accounting and invoicing practices, processes, procedures, and workflow
	Accounting and invoicing department structure and the responsibilities of management, job costing staff, and others involved with the cost accounting and invoicing processes
	Cost accounting and invoicing forms, reports, documents, and other related communications means including production time cards, job cost reports, estimated verses actual reports, invoices, and work-in-process reports.
	Communicating job information to the billing department, identifying and tracking jobs ready to bill, billing turnaround cycles, establishing the job bill price, and preparing bill/invoice documentation.
	Accuracy of capturing labor and equipment time, material transactions, production counts, and other cost information
	Accuracy of capturing chargeable and non-chargeable production activities, labor hours, product quantities, good and bad material consumption, and costs.
	Methods of analyzing and measuring individual job costs and profitability including auditing captured data, identifying missing information, editing or making corrections, and closing out jobs.
	The utilization of information technology and the internet for collecting job costs and invoicing customers including the setup of cost centers, operation/process codes, and shop floor data collection

Budgeted Hourly Cost Rates Preparation
Profectus’ budgeted hourly cost rates preparation services identifies your "True Costs” so you can sharpen your pricing and competitiveness on the more desirable work and avoid the less lucrative work. We prepare a budgeted hourly costs analysis of your equipment and labor activities. Our approach distributes 100 percent of your expenses among your cost centers so that your costs are accurately absorbed in your estimates, actual costs, and pricing.

You receive detail reports of your hourly cost rates and the information to support our analysis. The reports provide a breakdown of your cost data and budgeted hourly cost rates based on various productivity levels for each piece of equipment. The reports identify the distribution of the following expenses:

• Indirect costs
• Direct costs
• Manufacturing costs
• All inclusive costs
• Labor costs
• Gross and net production hours
• Productivity levels
• Cost per productive hour
• and more

You also receive the Budgeted Hourly Rates Software used by Profectus to develop your hourly cost rates so you can update your hourly cost rates to reflect future changes without the assistance of Profectus.

Price
The price of our cost accounting consulting services are based on the unique needs and situation of each client. Our fees are very reasonable and less then the money we save our clients and the value of our guidance.