The Challenge

One of HHL Group, Inc.’s manufacturing clients was unable to determine an accurate product costing system. They asked us to review their current financial system/processes and ascertain an accurate product cost for three separate lines of products.

The Solution

We discovered that the company’s product costing system was extremely dated, and the current financial staff were unable to determine an accurate product cost. To start, we reviewed all direct and indirect costs associated with manufacturing the product and worked with the team to determine accurate unit cost allocations. Secondly, we worked with the client to source a new vendor and implement a modernized accounting system that would be suitable for a company of this size.

The Results

As a result of our recommendations being implemented, the company improved its profitability within a few short months. The accounting team was also coached on how to update unit costs within the new accounting software to ensure the company will remain profitable in the future.