Harmonization of budgeting and financial accounting as an instrument of effective management of the enterprise

 

Currently, the nature of reforms in the system of economic relations determines the necessity of rethinking the theoretical and methodological approaches to the management of the enterprise.

Changing market conditions, and the level of development of the economic mechanism in the form of preconditions for increase of users of various information requests. The current economic situation dictates the necessity for improvement of the accounting system. Changes should be aimed at eliminating the fundamental differences between accounting for the needs of the formation of financial and management reporting.

Financial accounting is an integral part of  accounting. In turn, the latter also includes management accounting.

According to Doctor of Economic Sciences Lavrushina O. I., financial accounting applies to all spheres of enterprises activities, accounting objects and sources of their formation. Management accounting promotes the collection, processing and analysis of information necessary for managers in an organization to make correct management decisions. It gives the possibility to make effective decisions on certain issues. Thus, financial accounting - for information about the financial position of the enterprise management, in turn, - to make optimal management decisions on the basis of accounting information. It is on the basis of management accounting data for management decisions, planning of resources and monitoring of ongoing activities. Therefore, the use of management accounting is accompanied by the simultaneous staging of budgeting. Financial and management accounting are closely linked, and both provide a common goal. But if effective management is the final purpose, the data of the financial accounting is rather more of a means to achieving it.

An increasing number of Russian companies are implementing some form of this component managerial accounting as a system of budgeting. Lavrushin I. O. acting defines budgeting as an information system of corporate planning and management, with the use of financial instruments to determine the contribution of each division and its head in achieving common goals. Budgeting as a tool for planning, plan-fact of control and management is a relatively simple but useful form of technology financial management. Practice of application of budgeting shows that one of the major problems of the effective use of budgetary systems is their harmonization and integration used at the enterprise accounting system.

For the effective preparation of budgets for harmonization of administrative and financial accounting with the purpose of giving accounting information in advance reflection. This can be achieved by widening the borders for usage of information resources management accounting. In this connection, it is expedient to carry out the activities of allowing a harmonious exchange of information between these systems and transforming information resources management accounting in an effective system of budgeting.

In this connection, for many of the enterprises applying budgeting objectively there is a need for improvement of the mechanism of formation and transfer of accounting data in the system itself. To solve this problem, we define a number of tasks:

1. Compliance of accounts and sub-accounts and articles in the respective budgets. The possibility of change must be acceptable both in the direction of the budget classification and chart of accounts of any sub-accounts used, thus to ensure compatibility of the working plan of accounts and classification of budget articles.

2. Provision functions for conversion of stocks of finished products at current implementation rates, present at the enterprise of significant stocks of finished goods carried at cost. This function is necessary so that we can compare the accounting data with the budget (plan) indicators of finished products, which are easier to count in prices.

3. Format budgets should separately include planning in part and part accounting for the deviations, provided that the enterprise uses target-accounting rates. In this case, due to the appearance of lines planned and actual values of deviations from the planned-accounting, rates in the budget will occur in certain modifications.

4. Definition of technical mode of data transfer.
When forming the budget in the basis of "MS Excel" and subsequent processing of accounting data in the program "1C" forms the export of data from"1C" in "Excel". It  also carried out optimization of the distribution files in the local network and checks the reliability of the regime of cross-file Clearinghouse if you are responsible for a large number of centres, each with separate budgets.

5. Recognition factors forming speed transmission of accounting data and clarification of accounting registers, from which information is collected for the respective budget lines. The factors of forming speed transmission of accounting data include: the rate of formation and submission of the accounting Department of primary documents; the speed of transmission of accounting data in the budget system; speed of processing primary accounting documents; select registers of the removal of accounting data; the existence of functions of inspection and authorization data.

The challenges outlined above do not exhaust all the issues that may arise on the way to harmonization of budgeting and financial accounting. However, such decisions may give a good start for the convergence of these systems.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The List of used literature:

 

1.     Lavrushin I. O. Chem razlichaeza finansovii i upravlencheskii uchet, 2008. URL:[http://www.elitarium.ru/2008/07/16/finansovyjj_upravlencheskijj_uchet.html] (in Russian)

2.     Lavrushin I. O. Budjetirovanie: korotko o glavnom, 2008. URL: [http://www.elitarium.ru/2008/07/02/bjudzhetirovanie_glavnoje.html] (in Russian)

3.     Busilkova E. C. Finansovii i upravlencheskii uchet: problema nesaglosovanosti i puti ie reshenia, 2013. URL: [http://www.buhgalteria.ru/article/n118615] (in Russian)

4.     Kobzeeva V. V., Ivanov L. A. Problema garmonizacii budgetirovania I finansovogo ucheta, URL: [http://www.src-master.ru/article58.html] (in Russian)