How to keep management records

Official information on the financial condition of the enterprise is presented by financial statements. But for the prompt resolution of issues arising in the process of economic activity, management accounting is necessary. For successful business, you need to build it on several basic principles.

Instruction manual

1

The organization’s management accounting system should be based on information summarized according to the following requirements: - brevity and clarity of presentation, lack of unnecessary details; - accuracy and reliability; - efficiency, that is, it should be available by the time it is needed; - comparability by time and company divisions; - targeting, that is, it must be communicated to responsible persons, but with confidentiality.

2

There is no generally accepted standard for management accounting. Create a system suitable for your enterprise that would be optimal for operational decision making.

3

When developing a management accounting procedure, structure it into 2 main sections: accounting for the current state of resources and debts; cost accounting. The application of this method will help establish the amount and direction of spending money, as well as predict future needs in attracting additional financing.

4

Current accounting of resources and debts is the preparation of summaries and reports on the activities of the enterprise units in each area of ​​management at regular intervals (daily, weekly, monthly). In the summaries, as a rule, every day the state of things is recorded in different areas of activity, reports record interim results for a certain period or for a specific date (the first day of the month or week). The summary reports comprehensively summarize the most significant information that reflects the overall real picture, for example, for senior management, shareholders, banks, etc.

5

To organize the accounting of resources and debts, develop forms of reporting documents, methods for filling them out, the frequency of preparation, as well as the transfer procedure to management and other users. Focus on an approximate list of issues on which management accounting is based: sales, purchases, receivables and payables, stocks of finished goods, work in progress, raw materials and components, manufactured goods, barter transactions, cash flows, loan portfolio, off-balance sheet liabilities, profits and losses, management balance.

6

Cost accounting is the analysis of information about the general level of costs, profitability and loss-making of the enterprise as a whole, individual areas of activity, products and services, and divisions. To conduct it competently and transparently, divide expenses by cost items, frequency of occurrence and other parameters. For convenience, draw up a classification guide, taking as a basis the chart of accounts of accounting, or create your own model that takes into account the characteristics of your enterprise.

7

Automate the process of preparing and transmitting information: different developers offer software products to ensure effective accounting. Choose a program that meets your requirements from existing ones or prepare a technical task for creating a new one.

8

Over time, improve the management accounting system, adjust it with respect to emerging needs in the analysis and synthesis of information about the economic activity of the enterprise.