TOC Financial Model for Whole Business ROI Optimisation

I’m no Chartered Accountant.  And I’m convinced that most accountants live in fantasy land just like most EU socialist politicians (had to vent that one)

Yet management accounts are important for senior management to control top line and bottom line growth.

And as a Marketer, that’s the kind of accounting I’m interested in.

Theory of Constraints (TOC) uses an accounting method called Throughput Accounting (as opposed to the typical method of Cost Accounting).

The screenshot here illustrates the TOC Financial Decision Model page presented in the Goldratt Research Labs Harmony software.

toc-financial-model

The software let’s the user change the numbers shown in blue, with the black figures auto-calculated.

If you need to manage business management accounts, do some research on TOC Throughput Accounting. You’ll soon come to appreciate the power, simplicity, and value in the TOC Financial Decision model.

Posted by Gavriel

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