For a start, decide that the leadership of your company and you personally mean by “management accounting”? Nothing causes the big disputes among the heads of financial services as the concept of management accounting.
The basic postulate, which describes the term “management accounting” as an internal company account that allows you to take prompt correct decisions, give the right a broad interpretation of this form of profitability and methods of its organization.
The basis of the principles of management accounting is its accuracy, which is based on the following properties of the information provided in management accounting:
— Clarity for users, where information on complex issues should not be excluded from reporting only on the basis that it will be difficult to understand for certain user groups — Relevance when the information helps users to evaluate past, present or future events, or confirms (or corrects) their evaluation for past year — Essentiality if the omission or misstatement of information may influence decision of users — Reliability, when the information is free from material error, is unbiased, and when it is really something to represent what was intended or what one would expect from its representation — Comparability, that is, the user should be given the opportunity to compare statements of the company for different accounting periods and different companies in one period of Neutrality. Despite the fact that reporting to some extent is based on evaluative judgments of the management of the Group, it is prepared so that it contained scores were as impartial — Continuity and consistency of performance. Data presentation and algorithms of calculations in the financial statements should be retained from one reporting period to another, except when changing the nature of the business of the company or change the standards — the Prevalence of substance over form. Business transactions and other events are accounted for and presented in accordance with their real economic substance, not their legal form.
On information called in “management accounting”, may be some limitations: — the Balance between timeliness and reliability, that is, the check data must be at a sufficient level that the information was considered reliable, but should not spend a lot of time to stay timely and relevant, the Balance between benefits from the use of information and the cost of its receipt, that is, time and labour costs of obtaining accurate information must be balanced with the value of information.
These same principles are the basis of economic activities of the company according to IFRS, so often management accounting is IFRS.
There are different types of management accounting: — management accounting as a set of management reports based on the data of the accounting or financial accounting; — management accounting as the accounting under IFRS — management accounting as budgetary accounting, and plan-fact analysis — management accounting as an independent type of accounting, which is carried out in parallel or in series with other circuits into account, which in turn may be based on financial data or accounting and have certain assumptions.
To build management accounting uses specific techniques and approaches. So, to ensure the timeliness of accounting may be used, certain assumptions and assumptions that are invalid in the actual activities. As an example, to obtain an “Expected fact of profit” on the 5 day following the reporting month it is possible to neglect certain accuracy of information.
Now the first step in building your management accounting system is defining the purpose of accounting, that is what you want it to.Objectives are formulated by the user in any form. An example of a goal:”n) to Ensure the formation of the expected profit of the company on the 5th date following the reporting month on the basis of a “closed” financial base “closed” base implementation of approved technical reports of the workshops; in the absence of actual costs — planned to take”to Build a system of management accounting as a system of reporting production and cost analysis production compared to plan (annual plan, monthly plan)”Usually the leadership goals are formulated on two levels: General goals and more specific wording. Further, the methodologist, analyst that is expert in building information systems forms the third level of objectives and for each objective, third-level — list necessary for solving problems.
This document entitled “project Objectives” is consistent stakeholders and approved. We expect the project on creation of management accounting in the company. Initially, we only created the preconditions for its creation.
Will do a review of what we have to do. Before talking about automation it is necessary to form a concept for the future system, design documents (the forms of the rules), and only then to begin to formulate the automation tasks.
For proper automation of processes it is necessary to clearly formulate the goal, to create tasks, to analyse the possibilities of the existing information system with the requirements of scaling in time, and then to formulate requirements for system changes. And only after that — to form a technical task. The automation process begins.
Next, you need to predict the timing, resources, the result obtained, develop a plan and a project team to assess risks, to create work rules within the framework of the project. After that, the task is given to the programmers who create the software environment, allowing the information system to achieve all objectives.
Support of process automation, the acceptance of the finished result — not less important process than the initial formulation of the problem, because at every stage possible deviation from the goals, which can lead to unpredictable result, which requires the active participation of analysts.Analysts in this process must have dostatochnym amount of domain knowledge, professional knowledge in the subject of building information systems, and knowledge of the basics of programming and algorithmization.
A common practice is the use of consultants-experts in building efficient information systems from the stage of formulating the requirements to the stage of acceptance.