Development of Management Accounting System Methodology

Project Goal

Creation of tools for managing the company’s financial and economic activities and liquidity, based on accounting, accumulation, processing of reliable information on all business operations, and compiling reporting necessary for management decision-making.

Main tasks are to obtain reliable information about:

• The composition of costs (by cost type) of company divisions and the company as a whole;
• The cost of production for each area of activity and type of company product;
• The company’s ability to generate profit, and the sources of the company’s profits or losses;
• The efficiency of internal company processes and the performance of company divisions;
• The financial stability (liquidity) of the company, amounts of assets and liabilities by their types;
• Amounts of accounts receivable and payable by debt type;
• Cash receipts and payments that change balances in the company’s settlement accounts and cash desks;
• The company’s cash flows;
• The sources of difference between the company’s profit and generated cash flow.

Project Stages:

• Company Familiarization:
  • Strategy;
  • Organizational structure;
  • Business processes.
• Development of Management Accounting Methodology:
  • Management accounting tasks;
  • Financial structure;
  • Forms and formats of management reports;
  • Management chart of accounts;
  • Classifiers, reference information (analytical attributes);
  • Business operation accounting schemes;
  • Methodology for cost allocation and calculation formation;
  • Methodology for management reporting consolidation;
  • Process regulation.
• Compilation of the “Management Accounting System Regulation” document.

Execution Methodology:

• Drafting an initial list of requested documents from the Customer and analyzing them;
• Compiling a list of questions for the Customer’s respondents and analyzing response results;
• Conducting interviews with the Customer’s managers and key employees;
• Analyzing the received information;
• Coordinating and approving the developed documents on management accounting methodology.

Project Result:

• A formalized management accounting policy corresponding to the current and prospective development tasks of the company;
• A structured list of works and investment volumes for automating the management accounting system.

Value for the Customer:

• Increased transparency of business and financial flows;
• Obtaining reliable information on all business operations;
• Improving the quality and promptness of management decisions made at the operational management level;
• Effective control over business activity risks;
• Evaluation of personnel performance, middle management, and executive staff;
• Enhancement of the company’s investment attractiveness.