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Podcast Summary
In this episode of the Better Batch Podcast, hosts Alex Koves and Peter Suddard sit down with financial expert Shalena Hardy to discuss how bridging the gap between operations and accounting can transform manufacturing performance.
Shalena explains that integrating sound financial practices—like understanding P&L, balance sheets, and cash flow statements—with day-to-day production decisions reveals hidden inefficiencies and cost opportunities. She offers practical advice on refining inventory tracking, managing scrap, and using data-driven KPIs to build a sustainable foundation for growth.
Key Takeaways
- Bridging Operations and Accounting Fuels Growth: Integrating financial insights into daily operations ensures that production decisions are data-driven, reducing inefficiencies and optimizing overall performance.
- Deep Dive into Financial Fundamentals: Mastering your P&L, balance sheet, and cash flow statement is crucial for identifying cost issues, forecasting needs, and supporting strategic decision-making.
- Precision in Inventory and Cost Management: Accurate unit measurements, conversion factor checks, and diligent scrap tracking are essential to correctly determine the cost of goods sold and prevent hidden discrepancies.
- Early Adoption of Financial Maturity: Establishing robust financial processes early prevents costly approximations and prepares your business for scalable growth.
- Leveraging Data-Driven KPIs: Utilizing ERP systems to monitor targeted key performance indicators enables continuous adjustments in both operational and financial areas, ensuring long-term efficiency and profitability.
Actionable Tips
- Schedule Regular Financial Audits: Conduct monthly reviews of your financial statements to quickly identify discrepancies and adjust strategies as needed.
- Standardize Inventory Management Processes: Develop and document standard operating procedures (SOPs) for inventory tracking—including unit measurements, conversion factors, and scrap management—to maintain accurate cost records.
- Clarify Team Responsibilities: Define clear roles for both operations and accounting teams to foster better communication, accountability, and seamless decision-making.
- Implement Targeted KPIs: Identify 3–5 core KPIs that reflect both operational efficiency and financial performance, and integrate these into regular performance review meetings.
- Engage External Expertise When Necessary: If internal processes lag behind growth demands, consider partnering with a financial consultant to streamline your systems and ensure they scale effectively.
About the Guest
Shalena Hardy is a seasoned financial expert specializing in bridging the gap between operations and accounting for batch manufacturers. With a deep understanding of the complexities of financial management in regulated industries, Shalena has helped numerous companies optimize their financial strategies, improve operational efficiencies, and drive sustainable growth. Her insights are a game-changer for manufacturers looking to make data-driven decisions that empower their teams.
📧 Website: http://bluegoldacctservices.com/
🔗 LinkedIn: Connect with Shalena
About the Hosts
Alex Koves: As the President and CEO of Mar-Kov, Alex leads the charge in delivering purpose-built software tools that simplify complex manufacturing challenges. His background in operations management fuels his passion for helping businesses optimize their processes. Connect with Alex on LinkedIn.
Peter Suddard: Peter has worked with batch process manufacturers for years, helping them scale and improve their business. He has extensive experience ensuring customer success and driving product enhancements, making him an invaluable resource for manufacturers seeking to scale. Connect with Peter on LinkedIn.