Diagnostics of the current system of management accounting

Project aims:

• To assess how effectively the current management accounting system works;
• To raise the effectiveness of the management accounting to an ideal level.

Project objectives:

• To analyse and organise the information on the current status and the integrity of the management accounting system within the clients’ company on an “as is” basis, i.e., the techniques and practices prevailing at the current moment;
• To identify additional (not yet implemented) customer requirements for the management accounting system and for management reporting;
• To form recommendations for improvement or refinement of the management process;
• To determine the list of work to be completed and the amount of investments for the automation of management accounting.

Project stages:

• Introduction to the company:
• Strategy;
• The organisational structure;
• Business Processes;
• The analysis of the existing management accounting system:
• Accounting policies for management accounting;
• The financial structure;
• The forms and formats of management reports;
• The management chart of accounts and analytical attributes;
• The method for the collection and processing of data for management accounting;
• Cost allocation methods;
• The method for management accounting consolidation;
• The formalisation of processes;
• The regulation of processes.
• Preparation of the document “Reports (conclusion) on the system of management accounting”

Methods for:

• An introductory list and analysis of documents requested by the client;
• A list of questions for the clients’ respondents and analysis of resulting responses;
• Analysis of the information received;
• The co-ordination of recommendations on the improvement of management accounting.

Project results:

• Expert opinions on the current system of management accounting;
• Recommendations for improving the current system of management accounting;
• A structured list of tasks and modification of the existing information system (or the selection and calculation of the amount of investments in the automation of management accounting).

The value for the Client:

• A systemic vision of the problems in the current system of management accounting;
• A structured list of areas for improvement of management accounting;
• Mitigation of managerial risks when taking managerial decisions.