Benefits of Hiring a Cost Accountant
If your business is interested in reducing waste and increasing cost efficiency, you may want to consider hiring a cost accountant. Unlike a financial accountant, who calculates assets and liabilities, cost accountants analyze financial processes and make cost saving recommendations.
Roles and Functions
Determine if a cost accountant serves your business purposes. Familiarize yourself with the role as you prepare to discuss potential benefits with managers. The central functions of the role are:
- Computation is the main function, determining the unit cost of a product, be it for a mechanical product or a surgical procedure in a healthcare setting.
- Cost control strategies balance the limitations of budget allocations with actual expenses for producing an item or service.
- Cost reduction methodology considers ways for limiting overall and product expenses while maintaining an approved level of quality.
Gather concrete examples of the benefits of a cost accountant. This step aids you with learning more about the position as you prepare to present a proposal to your leadership team.
- Indirect costs for space and employee training have been exceeding projections. The cost accountant will investigate this and suggest alternatives.
- Product expenses per unit have outpaced revenues. The cost accountant details the reasons for this and provides information about strategic solutions.
- Calculation of equipment depreciation and inventory value, and identification of finance tracking gaps are within the role’s purview.
- The cost account provides you with cost gap solutions and details on budget and performance measure redesigns.
Cost Accountant Selection Tips
- Choose a cost accountant who has:
- A bachelor’s degree with a solid academic accounting background and three years of experience.
- Working knowledge of accounting software systems and the ability to use them analytically.
- Good communication and interpersonal skills for working with all levels of employees.
According to the 2019 DLC Group Salary Guide, the base salary range for a cost accountant in Los Angeles is $84,300 – $158,000. Employing an accounting and finance staffing agency, such as Beacon Resources can help you find the right full-time cost accountant for your company. However, if you don’t have a need for a permanent-full-time employee, DLC can provide you with a professional on an interim basis who can make an immediate difference.