CPA Firm Explains the Implementation of Activity Based Management

PRESS RELEASE: For immediate release 9/13/00
                            
CPA Firm Explains the Implementation of Activity Based Management

(Dallas, TX) According to Robert W. Scroggins, a Dallas CPA firm, Activity Based Management, or ABM, is an accounting-based shortcut to best practices and business process reengineering that can be implemented by an experienced accountant instead of by industrial engineers and specialized consultants."

According to Scroggins, most companies focus on controlling costs instead of the reasons for those costs. ABM uses the techniques of Activity Based Cost, or ABC, which analyzes costs by business activities and processes," says Scroggins. He explains that, an ABC analysis reveals which business activities and processes consume the most costs and what drives those costs. After the ABC analysis, the next step is to select which activities and processes to improve, determine the causes of problems or bottlenecks, and then implement solutions." Scroggins believes that ABM should be implemented initially in a pilot project consisting of one activity or process. With what has been learned in the pilot project, a company should be able to improve one activity at a time on a continuous basis," says Scroggins

Scroggins is quick to add that, although ABM helps management run the business better, traditional cost accounting is still needed for financial and tax reporting." When he implements ABM for clients, he avoids using an expensive team of ABM consultants by relying heavily upon the knowledge of current employees. We also use spreadsheets instead of specialized software that interfaces with the general ledger. You don't need to be an Information Technology specialist or Enterprise Resource Planning expert to keep up our spreadsheets. By doing this, we cut implementation time in half and the company is self-sufficient in ABM after we leave," says Scroggins.

Scroggins concludes by saying, the only caveat is that, as in most situations involving business change, you need the authority and support of top management for a successful implementation."
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Robert W. Scroggins, CPA, was founded in 1984 and is located in Dallas, TX.
For Further Information contact Robert W. Scroggins, CPA
E-mail: rscrogg@atexascpa.com / Web: http://www.atexascpa.com
Tel. (972) 354-6480 Ext. 1040 / Fax (360) 838-0943