Management accounting at the enterprise
In order to understand what management accounting is, it is necessary to classify its components. The main indicators of this system include:
- planning of income and expenses;
- attraction of financial resources;
- distribution of incoming funds, which must be carried out in strict accordance with the planning;
- accounting for expenses actually incurred by the business entity and comparing them with the projected indicators;
- Formation of reporting on received and spent resources for both internal use and for external consumers;
- control over all the above processes.
Thus, management accounting in the enterprise- this is a set of planning, financing and spending, as well as control over all these actions, made through reporting. The implementation of all these processes is necessary to provide information to managers and managers, on the basis of which decisions must be taken to improve the efficiency of the organization. Management accounting at the enterprise sets itself the task of planning, determining expenses and controlling them. At the final stage, administrative decisions are made.
The planning process is to determine the actions that will need to be performed in future periods. It is based on an analysis of the already obtained performance indicators of the enterprise.
Accounting for costs incurred in the production process,begins with the collection of information that relates to costs incurred in the procurement or at the time of release of goods or services. The establishment of control should ensure real planning related to the activities of the organization, and track performance of the forecast indicators, analyzing the deviations in case they arise.
After all these stages, management accounting at the enterprise helps accomplish the final task - making the right decision aimed at more efficient production management.
Information that is provided forthe development of the strategy of the business entity, was traditionally financial and was provided in monetary units. Recently, management accounting at the enterprise has expanded its boundaries. To make the necessary decisions, physical and operational data concerning the quality of the products and the duration of the technological process are also collected.
Attention was also drawn to subjectiveindicators, such as satisfaction of consumer demand and operational characteristics of the new product, as well as the availability of creative potential of the enterprise team.
Thus, to the information necessary formanagement accounting include operational and financial data characterizing the activities of the business entity and the processes carried out for the purpose of issuing finished goods, as well as information about the structural units of the organization, its products or services, and customers.
The correct organization of management accounting atenterprise is an extremely important factor for its normal development and functioning. With the help of the necessary information managers and managers develop the necessary areas of the organization's activities. Strategic tasks are defined taking into account existing material resources and consumer demand.
Correctly organized management accountingwill allow to really assess the existing external and internal factors that affect the solution of specific tasks, and ensure the relationship between the structural units of the organization. An analysis of the indicators provided will also help to reduce costs and open additional internal sources of resources.
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