Beyond the Books: Turning Your Accounting into a Competitive Advantage, Ep #20

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What if I told you that your accounting function could be your greatest weapon in the fight for better margins, smarter decisions, and stronger growth? Too often, we treat accounting like a chore—just another box to check, another invoice to send. But if you’re serious about building a resilient, efficient, and scalable manufacturing business, then it’s time to look at accounting as a strategic function.

In this episode, I’m joined by three experts from CLA—Phil Hanke, Mary Strand, and David Mauch—who live and breathe operational accounting for manufacturers. We dig into how small to midsize shops can build better systems, forecast more effectively, and make real-time decisions rooted in good data (not gut feelings).

We’re not talking about spreadsheets for the sake of spreadsheets. We’re talking about boots-on-the-floor insight, setting up your ERP and accounting tools the right way, and actually using the information you collect to improve margins, reduce waste, and grow confidently. From budgeting basics to cash cycle calculations, this episode is packed with practical takeaways.

If your current financial reporting feels like a black box—or if your books are still being run by a well-meaning family member without formal training—you’ll want to lean in. Because accounting isn’t just about reconciling the past; it’s about owning your future.

You will want to hear this episode if you are interested in…

(0:00) Mike shares a personal success story about ROI from investing in ProShop ERP
(0:20) Why I believe you need to invest in ProShop ERP
(2:25) Introducing guests from CLA and why their work matters to manufacturers
(5:04) The labor gap isn’t just on the floor—it’s in accounting and admin roles too
(8:26) Mary defines “operational accounting” and why it starts on the shop floor
(12:54) Steel toes and inventory flows: how to diagnose inefficiency at ground level
(14:53) Budgeting isn’t optional—Mary breaks down how to start simple and get real
(19:11) Why budgeting should be a living, breathing document
(20:46) Phil walks through how to turn planning into performance KPIs
(24:32) Gross margin, product-line profitability, and how to use your income statement
(27:43) Working capital and cash cycles—don’t let your AR terms bury your business
(29:55) Pricing strategy that accounts for your cost of capital
(33:00) Stay tuned for more information about Top Shops 2025
(33:25) Frequency of financial monitoring—daily vs. monthly vs. quarterly
(34:47) Predictive vs. lagging indicators and building a metrics dashboard
(38:38) David explains how to collect actionable data without fancy tools
(43:48) Connecting floor-level data to pricing, burden rates, and margins
(47:22) How 5S and competition drive operator engagement in performance metrics
(53:03) The danger of underutilizing your ERP or treating QuickBooks like a checkbook
(56:00) Why financial statements should align with what’s happening on your floor
(58:16) Low-hanging fruit you should focus on now
(1:01:47) Check out the Machine Shop Mastery podcast