Modern principles of management accounting
In the modern economy, accountingis not only a tool for processing financial and economic information, but also acts as an active participant in the implementation of the company's or company's development strategy. That is why its modern tasks and principles are most decisively different from those that took place, for example, 20 years ago. Modern accounting performs much more and much more substantial in content functions, which turn it into a direct factor of the economic well-being of the enterprise.
Management accounting is a holistic system,including tasks and principles of management accounting, information and computing activities, procedures and resources, through which the classical functions of financial management are carried out: calculation, generalization, accounting, analysis, control, forecasting and others.
The leading goal of such a system is a constantmanagement of the balance of the enterprise, its cash flows, resources, assets and other objects that make up the capital of the enterprise. The most important indicator of the effectiveness of the current model is its tasks, which are considered as the final result of accounting and analytical actions, and the principles of management accounting.
The tasks that are solved by management accounting are:
- research and identification of sources of risks in the work of an enterprise or institution;
- development, implementation and management of the company's pricing policy;
- joint (with marketing and other services) participation in the development of assortment policy;
- professional and reliable evaluation of the effectiveness of costs, investments, loans.
The second fundamental basis is the principles of accounting management accounting, representing the most significant general provisions and requirements for this type of activity.
Let's consider some principles of the administrative account, defining today economic efficiency of the enterprises and the companies.
The principle of reliability comes from the statement that it is inadmissible to provide and operate inaccurate and unverified data and information about the business activities of the enterprise.
The principle of materiality presupposes such aattitude to all the information with which analytical operations are carried out, in which they are all considered to be objectively important and determine the nature of the managerial actions taken and the quality of the work of the whole enterprise.
Such principles of management accounting asprudence, suggest the need for some caution in analytical work with data and information, and especially when building forecasts for economic development.
The principle of domination of the essence over forminvolves the reflection in the accounting of all phenomena and events of business activities both in accordance with their legal significance, and based on their economic essence.
The principle of continuity presupposes keeping records that the fact of the development of an enterprise or company in the future is adopted a priori.
The principle of unity of units of measure and proceduresThe measurement requires the use of unified methods and procedures for assessing the position of the enterprise. This approach ensures comparability of results and the possibility of organizing continuous monitoring of results.
The principle of efficiency requiresconducting a current assessment of the results of each work site and division of the enterprise with a view to timely identifying trends in its development and taking urgent measures to respond to these trends.
Such principles of management accounting ascontinuity and periodicity, put forward the requirement to create a system (model) of accounting that would allow it to be repeated many times in various types of economic activity and to ensure pre-emption in preparation for the next stages of accounting.