It is estimated that U.S. companies lose billions a year due to the lack of proper cost accounting. A business will usually bid on complex projects using an experience estimator who works up cost estimates. But the real question is: How do you know afterwards whether the estimate was accurate or not? You need after-the-fact cost analysis to evaluate the accuracy of the bid estimate. You are hitting a baseball in the dark, with no lights.
There is no way to tell a foul ball from a home run.
You need someone to develop and implement an accurate, consistent methodology to allocate expenses. The ultimate strategic goal begins with developing and monitoring budgets and ends with management being engaged with monthly financial review.
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