Global management accounting principles: communication as a basis of efficient business

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Global management accounting principles: communication as a basis of efficient business

Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 8, Issue

Abstract

Recent researches by reputable professional organizations indicate a fundamental changes in the content and role of the financial profession in business management and the status of accountants in the management hierarchy of organizations. Experts are claiming that now the finance is embedding itself across the business. The purpose of the article is to reveal the importance of introducing the Global Management Accounting Principles into the activities of a modern enterprise, to show how the principle of communication creates a solid basis for the preparation and using of integrated data, that provides the modern information needs of different categories of users. The management accounting system is most flexible in terms of adaptation to the requirements of integration of financial and non-financial data, it has more modern tools for data collection and processing, including those that can not be measured by standard accounting methods. Considered in this article, the principle "Communication provides insight that is influential" is intended to ensure an effective decision-making about strategy and its execution at all levels. The novation in the functions of accountants under the influence of this principle is direct communication of management accountants with the management of the organization, discussion of their information needs for the identification and analysis of the most relevant data for decision-making, which will have a significant impact on activity of the organization. In order to achieve the efficient implementation of the principle of communication, the management of the organization must perform the following steps: 1) to include management accountants in the working groups for the preparation of alternative management decisions; 2) to provide the possibility of management accountants to improve their skills in the most advanced methods of data collection and processing; 3) to involve non-financial indicators to the internal and external reporting, in addition to financial data, including the risk indicators; 4) to foresee an opportunity for management accountants to communicate with all departments of the enterprise for obtaining the necessary information; 5) to conduct meetings and consultations with management accountants before making key business decisions.

Authors and Affiliations

Mariia Mykhailivna Shyhun, Nataliia Anatoliivna Ostapiuk

Keywords

EP ID EP531294
DOI -
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