Diagnostics of the Current Management Accounting System

Project Goal:

• To evaluate how efficiently the current management accounting system works;
• To improve the current management accounting system.

Project Tasks:

• Analyze and systematize information on the current state and integrity of the management accounting system in the Client’s company based on the “As-is” principle, i.e., currently established methodologies and practices;
• Identify additional (not yet implemented) Client requirements for the management accounting system and management reporting;
• Formulate recommendations for improving or refining management processes;
• Determine the scope of work and investment volumes for the automation of management accounting.

Project Stages:

• Familiarization with the Company:
  • Strategy;
  • Organizational structure;
  • Business processes.
• Analysis of the existing management accounting system:
  • Management accounting policy;
  • Financial structure;
  • Forms and formats of management reports;
  • Management chart of accounts and analytical attributes;
  • Methodology for collecting and processing data for management accounting;
  • Cost allocation methodology;
  • Management reporting consolidation methodology;
  • Process formalization;
  • Process regulation.
• Preparation of the document “Report (Conclusion) on the Management Accounting System”

Execution Methodology:

• Preparation of a preliminary list of requested documents from the Client and analysis of these documents;
• Preparation of a list of questions for the Client’s respondents and analysis of the response results;
• Analysis of the received information;
• Coordination of recommendations for improving the management accounting system.

Project Result:

• An expert conclusion on the current management accounting system;
• Recommendations for improving the current management accounting system;
• A structured list of works to modify the existing information system (or selection and calculation of investment volumes for the automation of the management accounting system).

Value for the Client:

• A systemic view of the problems in the current management accounting system;
• A structured list of directions for improving the management accounting system;
• Reduction of management risks when making management decisions.