Lean accounting in Malta: a study of its awareness and application

Abstract

Purpose: This study examines the awareness and use of Lean Accounting within Maltese manufacturing companies. Given that overseas various manufacturing organisations are implementing Lean Accounting, it is interesting to determine what is happening locally in this regard. Design: Data was collected via a questionnaire from eighty respondents and analysed using SPSS software. Findings: The awareness of Lean Accounting in Malta is still lacking and many organisations have never considered replacing their conventional accounting system with a Lean Accounting system. Having said this however, there is a small percentage of companies from various industries who have adopted certain principles and practices which form part of Lean Accounting. This is quite encouraging, as it indicates that Lean Accounting is not a complete novelty in Malta and that there are some companies which have the right tools and techniques to take on the lean journey. Conclusion: The implementation and use of certain Lean Accounting aspects will be far easier to accept than others, mainly due to the fact that practices such as the use of Cycle Counting and performance measures are already being implemented by the majority of the sampled companies. Value: It is hoped that this study will shed light on the importance of Lean Accounting especially since in this highly competitive world, becoming lean should be one of the top priorities for many organisations.