Accounting is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the "language of business",  measures the results of an organization's economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators.  Practitioners of accounting are known as accountants.


Accounting can be divided into several fields including financial accounting, cost accounting, management accounting, auditing, and tax accounting.  Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers;  and management accounting focuses on the measurement, analysis and reporting of information for internal use by management.  The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.


Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms,[9] and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom.  As of 2012, "all major economies" have plans to converge towards or adopt the International Financial Reporting Standards (IFRS).


Cost accounting is a complex process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.


Since managers are making decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations. Instead, information must be relevant for a particular environment. Cost accounting information is commonly used in financial accounting information, but first we are concentrating on its use by managers to make decisions.


Unlike the accounting systems that help in the preparation of financial reports periodically, the cost accounting systems and reports are not subject to rules and standards like the Generally Accepted Accounting Principles. As a result, there is wide variety in the cost accounting systems of the different companies and sometimes even in different parts of the same company or organization. 



Cost Accounting vs Financial Accounting:

Financial accounting aims at finding out results of accounting year in the form of Profit and Loss Account and Balance Sheet.  Cost Accounting aims at computing cost of production/service in a scientific manner and facilitates cost control and cost reduction.


Financial accounting reports the results and position of business to government, creditors, investors, and external parties.  Cost Accounting is an internal reporting system for an organization’s own management for decision making.


In financial accounting, cost classification based on type of transactions, e.g. salaries, repairs, insurance, stores etc. 

In cost accounting, classification is basically on the basis of functions, activities, products, process and on internal planning and control and information needs of the organization.


Financial accounting aims at presenting ‘true and fair’ view of transactions, profit and loss for a period and Statement of financial position (Balance Sheet) on a given date. It aims at computing ‘true and fair’ view of the cost of production/services offered by the firm.


Lean accounting has developed in recent years to provide the accounting, control, and measurement methods supporting lean manufacturing and other applications of lean thinking such as healthcare, construction, insurance, banking, education, government, and other industries.


There are two main thrusts for Lean Accounting. The first is the application of lean methods to the company's accounting, control, and measurement processes. This is not different from applying lean methods to any other processes.


The objective is to eliminate waste, free up capacity, speed up the process, eliminate errors & defects, and make the process clear and understandable. The second (and more important) thrust of Lean Accounting is to fundamentally change the accounting, control, and measurement processes so they motivate lean change & improvement, provide information that is suitable for control and decision-making, provide an understanding of customer value, correctly assess the financial impact of lean improvement, and are themselves simple, visual, and low-waste. Lean Accounting does not require the traditional management accounting methods like standard costing, activity-based costing, variance reporting, cost-plus pricing, complex transactional control systems, and untimely & confusing financial reports. These are replaced by:


· lean-focused performance measurements

· simple summary direct costing of the value streams

· decision-making and reporting using a box score

· financial reports that are timely and presented in "plain English" that everyone can understand

· radical simplification and elimination of transactional control systems by eliminating the need for them

· driving lean changes from a deep understanding of the value created for the customers

· eliminating traditional budgeting through monthly sales, operations, and financial planning processes (SOFP)

· value-based pricing

· correct understanding of the financial impact of lean change.


As an organization becomes more mature with lean thinking and methods, they recognize that the combined methods of lean accounting in fact creates a lean management system (LMS) designed to provide the planning, the operational and financial reporting, and the motivation for change required to prosper the company's on-going lean transformation.

Lean Six Sigma


Lean Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986.[1][2] Jack Welch made it central to his business strategy at General Electric in 1995.[] Today, it is used in many industrial sectors.[4]

Six Sigma seeks to improve the quality output of process by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.

The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects (3.4 defective features / million opportunities), although, as discussed below, this defect level corresponds to only a 4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a by-word for the management and engineering practices used to achieve it.


The DMAIC project methodology has five phases:

· Define the system, the voice of the customer and their requirements, and the project goals, specifically.

· Measure key aspects of the current process and collect relevant data; calculate the 'as-is' Process Capability.

· Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

· Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability.

· Control the future state process to ensure that any deviations from the target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, visual workplaces, and continuously monitor the process.


Some organizations add a Recognize step at the beginning, which is to recognize the right problem to work on, thus yielding an RDMAIC methodology


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- Accounting Topics:


1-Accounting Theory

2-Financial Accounting Theory

3-Management Accounting

4-Business Intelligence: A Managerial Approach

5-Advanced Accounting

6-Cost Control

7-Business Analytics: Data Analysis & Decision Making

8-Essentials of Taxation



1-Accounting Theory

1-Accountant’s Role in the Organization

2-Introduction to Cost Terms and Purposes

3-Cost-Volume-Profit Analysis

4-Job Costing

5-Activity-Based Costing

6-Master Budgeting

7-Flexible Budgets, Direct-Cost Variances

8-Flexible Budgets, Overhead Cost Variances

9-Inventory Costing and Capacity Analysis

10-Determining How Costs Behave

11-Decision Making and Relevant Information

12-Pricing Decisions and Cost Management

13-Strategy, Balanced Scorecard

14-Cost Allocation, Customer Profitability Analysis

15-Allocation of Support Department Costs

16-Cost Allocation: Joint Products and Byproducts

17-Process Costing

18-Spoilage, Rework, and Scrap

19-Quality, Time, and the Theory of Constraints

20-Inventory Management, Just-in-Time

21-Capital Budgeting and Cost Analysis

22-Management-Control Systems, Transfer Pricing

23-Performance Measurement, Compensation


2-Financial Accounting Theory

1-Financial Accounting Theory

2-Accounting Under Ideal Conditions

3-Approach to Financial Reporting

4-Efficient Securities Markets

5-Information Approach to Decision

6-Measurement Approach to Decision

7-Measurement Applications

8-Economic Consequences, Accounting Theory


3-Management Accounting

1-Organization and Accounting

2-Measuring and Analyzing Activity Costs

3-Measuring and Analyzing Product Costs

4-Managing Activities

5-Short Term Decisions and Constraints

6-Managing Organization

7-Decentralized Organizations


9-Cost Allocation

10-Absorption Costing Systems

11-Variable Costing and Capacity Costing

12-Standard Cost & Variable Analysis

13-Investment Decisions

14-Accounting in Dynamic Environment

A Guide for Indirect Cost Rate Determination



4-Business Intelligence: A Managerial Approach

1-Introduction to Business Intelligence

2-Data Warehousing

3-Business Performance Management

4-Data Mining for Business Intelligence

5-Text and Web Mining

6-BI Implementation: Integration and Emerging Trends

7-Portfolio of Options

8-Effective Performance Measurement

9-Problems with Dashboard Displays

A-Chaos Theory

B-Data Warehousing Concept


5-Advanced Accounting

1-Business Combinations

2-Stock Investments

3-Consolidated Financial Statements

4-Consolidation Techniques and Procedures

5-Intercompany Profit Transactions

6-Profit Transactions – Plant Assets

7-Intercompany Profits on Bonds

8-Changes in Ownership Interests

9-Indirect and Mutual Holdings

10-Preferred Stock, EPS, and Taxes

11-Push-Down Accounting,  Joint Ventures

12-Derivative & Foreign Currency Transactions

13-Foreign Currency Financial Statements

14-Segment and Interim Reporting

15-Partnerships – Formation, Operations

16-Partnership Liquidation

17-Corporate Liquidations & Reorganizations

18-Accounting for State & Local Government

19-Governmental Funds

20-Proprietary and Fiduciary Funds

21-Not-for-Profit Organizations Accounting

22-Estates and Trusts


6-Cost Control

1-Introduction to Cost Control

2-Basic Math

3-Unit and Recipe Conversions


5-Recipe Costing

6-Calculating Sales Price and Food Cost

7-Beverage Control

8-Control through the Purchasing Process

9-Receiving, Storage, and Issuing Control

10-Employee Organization and Scheduling 

11-Labor Management and Control

12-Revenue Prediction

13-Revenue Management

14-Income Statements and Budgets

15-A Discussion of Other Expenses



7-Business Analytics: Data Analysis and Decision Making

1-Introduction to Data Analysis and Decision Making

2-Describing the Distribution of a Single Variable

3-Finding Relationships among Variables

4-Probability and Probability Distributions

5-Normal, Binomial, Poisson, and Exponential Distributions

6-Decision Making under Uncertainty

7-Sampling and Sampling Distributions

8-Confidence Interval Estimation

9-Hypothesis Testing

10-Regression Analysis: Estimating Relationships

11-Regression Analysis: Statistical Inference

12-Time Series Analysis and Forecasting

13-Introduction to Optimization Modeling

14-Optimization Models

15-Introduction to Simulation Modeling

16-Simulation Models

17-Data Mining

18-Importing Data into Excel

19-Analysis of Variance and Experimental Design

20-Statistical Process Control

21-Statistical Reporting



8-Essentials of Taxation

1-Introduction to Taxation

2-Working with the Tax Law

3-Taxes on the Financial Statements

4-Gross Income

5-Business Deductions

6-Losses and Loss Limitations

7-Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

8-Property Transactions: Capital Gains and Losses, § 1231, and Recapture Provisions

9-Individuals as the Taxpayer

10-Individuals: Income, Deductions, and Credits

11-Individuals as Employees and Proprietors

12-Corporations: Organization, Capital Structure, and Operating Rules

13-Corporations: Earnings & Profits and Distributions

14-Partnerships and Limited Liability Entities

15-S Corporations

16-Multijurisdictional Taxation

17-Business Tax Credits & Corporate Alternative Minimum Tax

18-Comparative Forms of Doing Business




3-Lean Six Sigma (LSS) for Services - Book

-Financial and Banking Topics:


1-Financial Statements

2-Banking Systems

3-Options Futures & Derivatives

4-Accounting Excel Template



1-Financial Statements

1-Financial Statements An Overview

2-The Balance Sheet

3-Income Statement and  Equity

4-Statement of Cash Flows

5-Earnings and Financial Reporting

6-Analysis of  Financial Statements


2-Banking Systems

1-Introducing Money and the Financial System

2-Money and the Payments System

3-Interest Rates and Rates of Return

4-Determining Interest Rates

5-The Risk Structure and Term Structure of Interest Rates

6-The Stock Market, Information, and Financial Market Efficiency

7-Derivatives and Derivative Markets

8-The Market for Foreign Exchange

9-Transactions Costs, Asymmetric Information, and Structure of Financial System

10-The Economics of Banking

11-Investment Banks, Mutual Funds, Hedge Funds, and Shadow Banking System

12-Financial Crises and Financial Regulation

13-The Federal Reserve and Central Banking

14-The Federal Reserve’s Balance Sheet and Money Supply Process

15-Monetary Policy

16-The International Financial System and Monetary Policy

17-Monetary Theory I: The Aggregate Demand and Aggregate Supply Model

18-Monetary Theory II: The IS—MP Model


3-Options Futures & Derivatives


2-Mechanics of Futures Markets

3-Hedging Strategies Using Futures

4-Interest Rates

5-Determination of Forward and Futures Prices

6-Interest Rate Futures


8-Mechanics of Options Markets

9-Properties of Stock Options

10-Trading Strategies Involving Options

11-Binomial Trees

12-Wiener Processes and It's Lemma

13-The Black-Scholes-Merton Model

14-Employee Stock Options

15-Options on Stock Indices and Currencies

16-Futures Options

17-The Greek Letters

18-Volatility Smiles

19-Basic Numerical Procedures

20-Value at Risk

21-Estimating Volatilities and Correlations

22-Credit Risk

23-Credit Derivatives

24-Exotic Options

25-Weather, Energy, & Insurance Derivatives

26-Models and Numerical Procedures

27-Martingales and Measures

28-Interest Rate Derivatives

29-Quanto, Timing, and Convexity Adjustments

30-Interest Rate Derivatives, Short Rate

31-Interest Rate Derivatives: HJM and LMM

32-Swaps Revisited

33-Real Options

34-Derivatives Mishaps

35-Behavioral Finance, Racetrack Betting


4-Accounting Excel Template

1-Accounts receivable aging

2-Asset depreciation schedule

3-Billing statement

4-Break Even Analysis

5-Budget Analysis

6-Business debt tracker

7-Business Analysis System

8-Business Analysis System

9-CEO What if

10-CEO Financial Assistant

11-Expense report

12-Budget Forecast Analyzer

13-Loan amortization schedule

14-Comprehensive Break-Even Analysis

15-Payroll calculator

16-Pricing Rules

17-Product Sales Sample

18-Statement of cash flows

19-Statement of change in equity

20-Year end tax plan




-Lean Six Sigma (LSS) Topics:


1- Lean Six Sigma: Process Improvement Tools

2-Free LSS e-books & documents from:

3-Lean Six Sigma (LSS) for Services - Book

4-Morteza Anvari Search


1-Lean Six Sigma: Process Improvement Tools & Techniques

1-Introduction to Lean Six Sigma


3-Strategic Planning

4-Creating a Customer Focus

5-Process Improvement Teams

6-Costs of Quality

7-Process Performance Measures

8-Project Management 

9-Problem-Solving Using Define, Measure, Analyze, Improve, Control

10-Value Added Process Mapping

11-Just-in-Time and Kanban

12-Five S

13-Kaizen and Error Proofing

14-Work Optimization

15-Productive Maintenance

16-Supply Chain Management


18-Variables Control Chart

19-Process Capability


21-Design of Experiments

22-Failure Modes and Effects Analysis

23-Quality Function Deployment




2-Free LSS e-books & documents from:

1-Successfully deploying Lean in healthcare - Philips Healthcare


3-BEEF Many of America’s Favorite Cuts are Lean

4-What is Lean? - Xyngular Corporation

5-The Promise of Lean in Health Care - Medline Industries ...

6-Exploring the Impact of Lean Management on Innovation ...

7-How To Compare Six Sigma, Lean and the Theory of ...

8-Lean Manufacturing : Principles, Tools and Methods ...


10-Lean Government Methods Guide - US Environmental ...

11-Lean In: Women, Work and the Will to Lead by Sheryl Sandberg


13-The Weight Loss Food Plan and Workout Arrangement Guide

14-What is Lean - Portal

15-Lean Manufacturing, 5S and Six Sigma - Folk Group

16-Lean Six Sigma - Anvari

17-Lean Process Improvement - Portland State University

18-Lean IT - TechExcel | Fully integrated ALM, CRM and ITSM ...

19-Lean In: Women, Work and the Will to Lead By Sheryl ...

20-Single Point Lesson Brochure and User Guide - Lean ...

21-Lean Options

22-Why Lean isn't Working in the Print Industry, and What You ...

23-Lean, Six Sigma, and the Systems Approach: Management ...

24-the lean muscle - - Huge Online ...

25-LEAN – Continuous Process Improvement - MMB Home ...

26-Lean Management: New - McKinsey & Company

27-Lean: Excellence in Government - US Environmental ...

28-Finance transformation: A Lean approach to increase value

29-The Lean Startup summary - | Creativity ...

30-Lean Project

31-LEAN MASS - Muscle & Fitness - Workouts, Nutrition Tips ...

32-Get Lean with Protein - Beef Nutrition

33-Lean Options

34-Lean Thinking Part I - MIT OpenCourseWare | Free Online ...

35-Building Momentum: The Evolution of Lean in BC's Health Sector

36-LEAN Office 5S Starter Kit - Simplicated, LLC

37-“Lean” Evaluation of the Corrective Action Process

38-THE LEAN TURNAROUND - Home - Lean Frontiers

39-Lean Combustion Technology for Internal Combustion Engines ...

40-LEAN and MEAN Eating

41-Lean and Environment Training Modules - Green Suppliers ...

42-Leadership of Lean Processes: Tools for Change Changing ...

43-Lean Manufacturing. pdf - SFSA

44-Lean Cuisine® Nutrition Information

45-HOW TO CREATE YOUR LEAN CANVAS - Business Model Canvas ...

46-A Study on Total Quality Management and Lean Manufacturing ...

47-Identifying Real Cost Saving in Lean Manufacturing

48-Principles of Lean Six Sigma - UPRM