Master's student,
Kostritsyna Marina
Karaganda Economic
University of Kazpotrebsoyus
Management accounting and problems of its introduction on the
enterprises.
Accounting is the main link of formation of economic policy, the
instrument of the business, one of the main mechanisms of management of
processes of production and production sale - promotes improvement of the
organization of production, operational and long-term planning, forecasting and
the analysis of economic activity.
The administrative account was created not as alternative accounting, an
as its new edition, "improved and added" with the purpose to
facilitate life to the person accepting decisions.
The world practice showed that in process of increase of the importance
of effective management by the enterprise, the accounting of production
expenses and calculation of product cost (the production account) are
transformed to management accounting.
In accounting management is understood as use of the advanced methods
for success of firms, thus there is an association of technical skills to
skills of a business management.
Administrative accountants: direct managers in financial value of
projects, explain financial consequences, business decisions, formulate
business strategy, exercise financial control, carry out carrying out internal
business audits, explain influence of the competitive market.
Management accounting by definition of the professional organization –
Institute of administrative accountants is a process of continuous improvement
of planning adding value, design, measurement and functioning of systems of
financial and non-financial information which directs management actions,
motivates behavior, supports and creates the cultural values necessary for
achievement of the strategic, tactical and operational objectives of the
organization.
Charles Horngren: "management accounting destroyed many
shortcomings of the production account", revealed potential possibilities
of use of decisions on which account data can have impact [1].
Management accounting on industrial firms develops in the following
directions: timely providing with information for development of optimum
decisions, the complex analysis, the accounting of interests of all divisions
of operated object for decision-making, behavioral aspect of the account and
the centers of expenses, the centers of profit, the centers of investments,
etc.
It is possible to allocate the following functions of management
accounting:
Planning is the central element of management. The management of the
organization establishes the purposes on prospect and defines priority of
solved tasks for their achievement. In operational planning they are segmented
on all structure of management by the organization, responsibility is
respectively distributed also. Each manager is responsible for achievement of
the purpose, makes a contribution to the solution of the general tasks of the
organization, and the system of management accounting provides necessary
information for planning and rationing, for control of implementation of the
plan.
Organization of internal management. Each manager according to the part
of the plan knows that from it expect. Together with the head it defines the
schedule and sequence of the solution of objectives, watches their performance.
The organization of performance of planned tasks is based on self-checking and
the report before the direct head. Management accounting provides exchange of
information between various control links which allows to control sequence of
performance of tasks, to specify the performance schedule, to take necessary
organizational, operational measures.
The account and control provide feedback function in a control system of
the organization. The account is a backbone element of management accounting.
Management accounting reflects the actual information on implementation of
plans, budgets and estimates. As a rule, it is constantly repeating accounting
of uniform mass operations. It conduct on accounting accounts. However many
data in system of management accounting have no mass character, they are
individual and them fix quickly without reflection on accounts. For acceptance
of the majority of decisions data of internal control need to be supplemented
with information from external sources (for example, data on market research,
on technological systems: the data characterizing the personnel, etc.)
therefore management accounting differs from the financial account a variety of
sources of information and methods of its processing.
Stimulation. This function of management is closely connected with
system of management accounting. Stimulation puts system in action and
constantly maintains in it necessary balance. Management accounting changes the
scheme of compensation for work of managers of all levels. He allows to
establish compensation, awarding depending on progress of each manager.
Management accounting contains full information for evaluation of the work of
managers and its fair payment.
The self-assessment and assessment of managers and the personnel is
possible on the basis of information of management accounting and is under
construction on comparison of results with objectives, on exact knowledge of
that it is necessary to make and that is made. Each manager himself can compare
the results with achievements of others. Existence of information on results of
work of certain managers allows to organize their preparation, retraining,
professional development. It is necessary to train managers proceeding from
objective information on the results characterizing strong and weaknesses of
each manager. And it is necessary to train managers professionally so that
results of their work were higher and only than those who is really capable to
increase the qualification and to make management better.
Coordination and exchange of information. Management accounting as
information system is used as the coordinating mechanism in work of managers of
all levels, promotes coordination through planning of all tasks from top to
bottom and to exchange of information between control system links. When
performing the general tasks heads of divisions are compelled to coordinate the
actions with each other.
In system of management accounting there are three forms of exchange of
information:
- information on the tasks set to managers and information from managers
to the higher head about performance of tasks;
- periodic drawing up reporting reports and the reviews characterizing
the general condition of implementation of plans;
- informal discussion of a state of affairs and course of performance of
objectives.
Decision-making process includes the following phases of action: Problem
definition, search of alternative decisions, assessment of alternative decisions,
choice of the best decision, realization, the report on the reached results
[2].
Management accounting plays an important role in decision-making
process.
Management accounting contains a lot of valuable information for
forecasting of results and various options of actions. Management accounting
can help with the solution of problems, revealing various alternatives and
their consequences that facilitates decision-making process.
The final stage of any system of the account is the reporting.
The main requirements to drawing up the administrative reporting are:
timeliness – information has to be presented by then when in it there is a
need; sufficiency – reporting data shouldn't contain excessive information, but
to be rather full; expediency - information has to consider features of the
purpose of management for which it is intended; addressing – reporting
indicators needs to be brought to the responsible user, observing the principle
of confidentiality; objectivity – it is necessary to exclude possibility of
bias, subjectivity of information for management, mistakes in its formation;
comparability – reporting data and indicators have to be comparable in time and
on enterprise divisions; profitability – costs of obtaining the administrative
reporting shouldn't be more effect from its use.
Observance of these requirements provides the operational review of
activity, possibility of definition of arising problems and miscalculations in
the management, a choice of optimum versions of their decision or prevention.
The reporting forms the basis for adoption of strategic decisions on
development of the organization and increase of efficiency of its activity.
At the present stage of development of social and economic structures
degree of rationality of creation of management accounting in the
organizations, and also degree of objectivity of reflection of its economic
activity as on it depends not only process of effective management, but also
successful functioning of the organizations in modern conditions began to play
an important role [3].
Today in the sphere of management some main problems appeared expenses
and financial results of activity of the organization.
First, there is a reorientation of the domestic theory and the saved up
experience on the solution of new tasks which face business management in the
conditions of dynamically changing market.
Secondly, new, nonconventional systems of obtaining information on
expenses are created, new approaches take root and adapt for prime cost
calculation, calculation of financial results, and also methods of the
analysis, control and acceptance on this basis of administrative
decisions. Considering this area, it is
expedient to note that considerable interest for the enterprises represents
studying of system of management accounting.
It is considered that management accounting is the integral control
facility the enterprise who allows to optimize quality and efficiency of made
administrative decisions, allows to improve expected result and effectively to
control risks of economic activity.
One more not less important problem exists in complexity of selection of
experts and an assessment of their qualification as on them the main
responsibility for statement and introduction of management accounting at the
enterprise lies.
Also there are difficulties with creation of the automated system of
collecting and obtaining information on sales, expenses, revenue, the income
and so on. If to consider the typical situations developing in the organizations,
it is possible to notice tendencies of a mismatch of interests of top managers
and heads of structural divisions concerning need of statement and conducting
management accounting that also complicates development and improvement of
system of management accounting.
Management accounting on the
majority of the enterprises is developed very poorly or isn't conducted in
general. Generally such phenomenon can be explained with absence of uniform
methodological base, methodical recommendations about the organization and
conducting management accounting in separate branches of economy, and also the
period of its formation and development in national practice[4].
Management accounting as the social and economic phenomenon is in
continuous development: its functions
extend, the set of the problems put to them and solved tasks increases, the
methods applied by this account, become more various, the alternativeness of
administrative models increases.
Besides management accounting the registration system of the
organizations includes tax and financial accounts which differ in the ways and
obligation of maintaining owing to the established law. So, accounting works
always in interests of third-party users. Thanks to it the balance sheet is
rather open document, and in a case about joint stock companies (open joint
stock companies) it even is published in mass media. Government bodies and
public organizations, in turn, provide the developed standards of accounting
obligatory for all organizations [5].
To solve the above-mentioned problems connected with difficulties of
introduction of management accounting in the organization, it is necessary to
solve some important problems.
It is possible to carry to such tasks: creation of financial structure,
development of the staff list, development of articles of cash flow, definition
of a procedure of payments, development of the budgetary regulations,
administrative book of accounts and conducting of management accounting, and
also development of the general administrative policy of the enterprise.
For example, analyzing work of
shops of the industrial enterprises, using management accounting, it is
possible to define financial result, that is profit or a loss of this or that
shop, therefore it is possible to reveal the unprofitable enterprises, the
reasons of their unprofitability, and then to make the decision on their
closing or to develop the program for elimination of financial problems.
Namely: to develop the necessary list of effective measures for decrease in
expenses, to develop system of motivations for the enterprise personnel.
As a result of an assessment and the analysis of influence of management
accounting on activity and functioning of the organizations it is possible to
draw the following conclusions: it is
paramount management accounting provides heads of all levels of management with
necessary information which is necessary for routine planning, control and
diagnostics, for adoption of operational administrative decisions.
Further, this account becomes a means of communication between levels
and structural divisions of management.
Also management accounting is directed on coordination of development of
the organization in the future as by means of the account there is a constant
assessment and the analysis of all activity and results of activity of the
organization.
Besides listed above the
problems connected with introduction of management accounting, any organization
will face and a great number of others. Personnel training, conflictness and
collective resistance to innovations, problems of formation of team and
establishment in it strong horizontal communications and so on.
As one of the main tasks of management accounting is the maximum
providing with information of managers and other administrative personnel, the
contents and availability of the intra organizational reporting is important
[6].
For the solution of such
problems the administrative personnel, first of all, should create the list of
information which is necessary for managers of various structural divisions,
and also to define degree of efficiency of providing information, its
regularity, whenever possible to maximize these indicators.
Also, it is possible to allocate
a problem of adaptation of management accounting in the organization, namely
weak structure of the considered account [7].
There are some versions of the solution of this problem: first, it is necessary to apply the rigid,
accurately established organizational structures of the account and information
analysis, secondly, it is necessary to enter certain restrictions and standards
in terms of providing processed information.
In this case, in the organization more effective administrative
decisions in the course of financial and economic activity of the organization
will be made.
Management accounting, unlike
any other types of the account is in modern conditions the most complex and
fundamental in administrative activity, that is it is the main strategy and
tactics without which there can't effectively be no modern enterprise.
Relevance of introduction of
management accounting is caused by various reasons: annual growth of the
competition; need of maintenance of competitiveness and efficiency of the
organization; annual requirements from management, shareholders about maximizing
profit; annual inflation.
The organization of introduction of system of management accounting at
the enterprise can be constructed: on the basis of use of internal shots of the
organization; with attraction new, qualified personnel for work on a constant
basis; with involvement of third-party experts on the basis of outsourcing.
The results received from introduction of system of management
accounting, will allow to place priorities in organization activity, will
provide prospect of stable development in the future.
Thus, introduction of management accounting once again proves the need
and relevance at the present stage of development of economy, business.
Literature
1.
Horngren Ch.T.
Foster Dzh. Accounting: administrative aspect, 2000 – 416p.
2.
Colin Drury. Cost
and Management Accounting, fifth edition, an introduction, M:2012 - 735p.
3.
Skoromnik V.
Conceptual provisions of methodology of operational and strategic management by
business expenses, electronic magazine neweconomic.com.
4.
Molvinsky A.
"Management accounting at the enterprise.
5.
Ryan B. Strategic
account for the head. — M.: YuNITI - 615p.
6.
Vakhrushin M. A.
Management accounting/M of A. Vakhrushin. – M.: JSC Finstat-inform, 1999 –
359p.
7.
Zhigaltsova O.
Management accounting: possibilities of introduction on the enterprises, 2009