The Impact of Implementing Lean Accounting on Cost Reduction and Improving the Quality of Managerial Decisions

Abstract

This research aims to study the impact of implementing lean accounting on reducing operational costs and enhancing the quality of administrative decision-making in Iraqi institutions. The study employed a descriptive-analytical approach to data collection, distributing a questionnaire to a group of employees in an industrial company. The results showed that the relationship between implementing lean accounting and cost reduction was not statistically significant, reflecting a weak level of implementation and the need for more effective improvement. The results also indicated that lean accounting contributes to improving the quality of administrative decisions by providing easily understandable and transparent financial information, but this effect was weak and not statistically significant. The study emphasized that continuous employee training, along with updating accounting systems, are essential elements for the successful implementation of lean accounting. Based on these findings, the study recommends fostering an organizational culture based on lean principles, developing accounting information systems, and linking the implementation of lean accounting to clear performance indicators to ensure the sustainability of the results.