Lean Accounting Series : Article 5 - An economic entity must have its eyes on the money

To achieve, just focus.

An economic entity's purpose is to generate revenue. The various activities performed by the entity can be broadly divided into revenue-generating activities and non revenue-generating activities. The entity must focus on the revenue-generating activities and the same must resonate with all the departments. When processes are defined within the accounting department there are some activities that are just for reporting and audit purposes. Lean accounting ensures that the major focus is on revenue-generating activities and the other activities are either reduced or made more efficient. When the focus of the entire department is towards a common goal, the efficiency and the results improve and help the entity grow.

Reducing time-consuming and non-essential practices helps the department focus on the essential and revenue-generating activities.