cost accountant

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.

Benefits

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.

Cost Overview

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.