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Presentation
Accounting Systems and High-Growth Startup Companies
American Association for the Advancement of Science, Pacific Division (2012)
  • Michael Lee, Boise State University
  • Spencer Cobia, Boise State University
Abstract
Accounting systems must keep up with a growing company. This case study examines how a start-up company was able to support its strategic changes, expansion in size and evolution in structure with accounting systems. We evaluate the past changes in the accounting system and propose a design to meet the future requirements of the company. To support rapid growth, the accounting system has had to evolve beyond its reporting and taxation needs to meet its future planning, monitoring and decision making requirements. We worked with the company to design a forward-looking accounting system to include a working model of a profit plan. To monitor and motivate perfomance, we develop a set of customer and operational measures with targets that directly linked to profitability. Finally, we demonstrate our design by showing management how it monitors the key measures, visualizes the impact on the profit plan, and assists decision making to keep company performance on track. Our case study reveals that accounting systems can and need to change continually to support the evolution of strategy and structure in a start-up company.
Disciplines
Publication Date
June 24, 2012
Citation Information
Michael Lee and Spencer Cobia. "Accounting Systems and High-Growth Startup Companies" American Association for the Advancement of Science, Pacific Division (2012)
Available at: http://works.bepress.com/michael_lee/8/