Nowadays, administrators and managers who run small and medium-sized companies think that when talking about cost reduction, it consists of reducing the company's costs in order to obtain higher profits; these "cost cuts", as they are commonly known, and which are usually made arbitrarily, achieve in most cases a positive short-term effect on the company's profit margins, but in the long term they can compromise the quality and operability of the organization.
Therefore, they focus more on the resolution of the symptoms (effects) of inefficiencies and ineffectiveness (causes) that in some cases are difficult to identify, since in many cases the accounting mechanisms are not taken into account in the decision making process.
With the above mentioned, it can be said that managers have the possibility of relying on the use of tools and techniques that allow them to use administrative-accounting systems as strategic tools; in the particular case of any company regardless of its type of economic activity and size.
Since it is a fundamental and transforming element, which allows a better adaptability of the mechanisms, registration procedures, investment analysis and validation of results that allow companies, which in many cases do not even use the appropriate accounting registration systems, to take advantage of the competitive advantages of an operational control of operation..
Likewise, it is important to highlight that the most important factor is not to know the cost, but rather to be able to manage it in an effective and efficient way; however, the latter is impossible if the amount has not been properly quantified.
In this way, it is necessary to optimize the systematized information that definitely orients to determine the real cost in the company's operations, and that helps in the decision making and planning of future actions directed towards the company's growth.