Due to the peculiarities of the legislation of the enterprise in Russia have some obligations related to the provision of different reporting to government bodies. For competent preparation of the necessary documents, consolidation of large amounts of internal corporate resources is often required. Most companies are formed including management reports that it is not necessary to submit to state bodies, but many firms make these documents. So what is needed by this type of reporting?

For which management reporting is drawn up

Management's management reporting is internal documents that contain certain figures reflecting different aspects of the company's business activity.

Such reporting is a significant component of planning in business. Documents forming it reflect the data that is quite important when calculating the prospects for any managerial solutions. When one or another stage of development of the company is completed, these documents allow you to analyze and identify the errors of the company's management, as well as the causes of these shortcomings and possible options for other solutions.

It is important to understand that financial, accounting, managerial reporting differ from each other. First, they have a different methodology. So, if the first two types of reporting are statistical data that reflects capital turnover, the management reporting not only reflects the statistics, but also interprets the numbers. Thus, the manual not only sees the numbers, but also understands what they mean.

For example, managerial reporting shows that a higher profitability is determined in the production of specific types of products, or, on the contrary, what is the cause of insufficient revenues and too large costs on a particular area of \u200b\u200bbusiness. Such interpretated figures in this reporting help managers to make the right decisions, update the main funds, in time to modernize the equipment and so on.

Management reports within the firm, with proper and timely preparation, contributes to the definition of less efficient areas of business.

Opinion expert

What can manage managerial reporting

Evgeny Kabanov,

leader: general director of Kubanagroprod, Krasnodar Territory

In order to understand why management accounting and reporting are needed, it is necessary to clearly define the goals that you are haunting, as well as those tasks that need to be solved. Shareholders of the company, including me, are forced to find answers to different strategic issues, because we need to see the results of their many years of business activities. The main indicator of management reporting is the cost of the company. The method of measuring this data involves an understanding of the algorithm for calculating the private value of the company and its differences from the method of calculating the value of the company whose shares are quoted in the stock market.

Plus, various sectoral factors can very much affect the cost of the company. In the event of our business, the price of the holding depends on the absolute and relative indicators of sales, net profit, the financial "lever" and the stock of financial strength. We try to pay attention to the cost of processing and its accounting, that is, on the level of labor productivity. If other conditions are equal, then this indicator determines the winner in the framework of the competitive struggle.

Of particular importance is attached to non-financial indicators (for example, the number of buyers for some period), client structure and other data. They make it possible to receive managerial reporting.

At the moment, in our company's management reporting system, information comes from an automated accounting plus is formed and analyzed in Excel. In order to eliminate the problems of organizational nature and other inconveniences related to the collection, processing and analysis of information, at the end of 2005, we decided to fully translate into our enterprises on the automated system.

The most characteristic example is Enron. Investors and lenders of this company lost a large part of cash due to the fact that all their attention was dedicated to the financial statements and these data did not see other important indicators reflecting business development.

What is included in management reporting

Management reporting does not have strict regulations within the legislation, it is formed in free form and must comply with the needs of the management of a certain firm. Due to this, there are a large number of options for such documentation. However, there are certain nuances that are important to include in the report.

1. Operating Reports

Operational activity is the main work of the company, which is aimed at making a profit (this is the production of goods, the provision of services and other activities that make profits).

This reporting includes data on:

  • production of goods;
  • acquisition of commodity and material values;
  • procurement of raw materials, consumables and components;
  • stocks of finished products in warehouses;
  • cash flow;
  • accounts receivable.

Thus, such a report reflects the current state of the company.

2. Reports on investment activities

Investing is an important part of the company. After all, even the smallest enterprise allocates funds that go to the development and expansion of the business.

This type of management reporting contains data on:

  • motion of fixed assets;
  • movement of intangible assets of the company;
  • long-term cash deposits;
  • planned investments and capital investments;
  • fulfillment of investment projects.

3. Financial reports

In this report, we are talking about short-term investments, the involvement of borrowed and share capital, crediting and cash management.

4. Reports on sales or services rendered

This reporting is drawn up by the Sales Service for the management and top managers of the organization. Such a document shows, in what volumes products and with what price tag is implemented. Sometimes additional information on shipping dynamics, stocks on warehouses, sales costs and the like can be reflected.

5. Procurement Reports

Such a report contains data on procurement of raw materials, consumables, equipment, tools and other industrial assets. This document is especially important in large production, where a large number of different material values \u200b\u200buse in the work.

Opinion expert

In management reports should reflect the key performance indicators

Natalia Gazizova,

head of the Office of Epicor Scala CIS, Moscow

To exclude in the work of financial services a creative approach to the compilation of the Company's management reporting, the head must clearly allocate the main indicators of the company's activities. At the same time, these data should be informative and allow you to track the results of the work and make forecasts. In our company, we refer to such indicators:

  • the volume of receivables and unlocked accounts (DSO, English.Daily Sales Outstanding is an indicator of unpaid sales);
  • the ratio of sales volumes to current customers and new for the reporting period;
  • gross margin (cross megrin);
  • company cost analysis (RUN-RATE ANALYSIS);
  • contribution of each of the activities (each type of product) into the company's profit (Sontribution);
  • capital expenditures.

Due to the fact that our company is consulting and project-oriented, it is also important for us to also take into account the average hourly rate of the consultant and the implementation (this indicator makes it possible to determine the degree of employment of our consultants in projects).

Basic forms of management reporting

There are several forms of management reporting, such as management balance.

Management Balancefor the most part, it looks like an accounting. However, there is a key difference from accounting management reporting, which is in functional purpose. This type of reporting not only reflects the numbers, but also allows them to interpret them from the point of view of the effectiveness of the organization's business model, that is, it makes it possible to see the picture of the general state of affairs in terms of assets and various obligations of the company to the partners, and vice versa.

Depending on how control reporting indicators will be interpreted, an original management reporting structure is formed. In this case, it is particularly important to use these reports.

The management balance is a universal document, as it includes information, interesting not only to the Director-General, but also his will and the owner of the business.

What are the topics of management reporting?

Gains and losses report It is a document that should be provided to the relevant authorities. At the same time, it can be used as a source when creating management reporting, it also contributes to the convenient structure of this document.

Such a report is designed to record the results of the company's activities during a certain period from the point of view of finance. It contains digital data on income, costs and financial results with a growing outcome. Within the framework of management reporting, it is reflected here: sources of revenue, expenditure articles, profitability of the company. However, so that it is not naked numbers, but an interpretation, it is necessary to accompany the above described data with additional sources that record the necessary clarifications regarding the indicators described in the report.

Another important type of reporting - cash Movement Report. This document shows the receipt of finances in correlation with sources. In addition, it reflects the payment of the organization correlate with key spending areas (for a certain period of time) and allows you to determine the company's creditworthiness. Such a report is useful not only to the leading composition of the enterprise, but also its owners.

All considered types of management reporting can be supplemented with other sources, which in turn can be based on a wide variety of approaches to their compilation.

Requirements that internal management reporting must be configured

1. Constability.

It is important to know that the understanding of the main goals of the management reporting of a specific type significantly increases its understandability for a particular user. In this case, the objectives of the reports must be determined during the development of the management reporting classifier.

Thus, it is clear that the report of this kind should be understood by the user management reporting, but there is a certain nuance: this user in turn should also have some special knowledge. The basis of this is the financial and economic information.

Of course, the management of companies is not obliged to thoroughly understand the methodology for the formation of management reports, however, aware of the meaning of the main indicators specified in the reporting, and also to know the managerial accounting policies managers must. In this regard, it is important to plan specialized training, and for managers of the company too. Most companies do not pay due attention to this issue, and lack of learning leads to many negative consequences.

So, the information that is contained in the reporting is obliged to be accessible to an understanding of the user who is familiar with the principles of management reporting and owns basic knowledge of economics and finance.

2. Significance

Management reports should always reflect exceptionally significant information data. Despite the fact that from the names of the documents it is clear that such reports are important for the organization and should contain only significant data, they are still in many firms they are overloaded with superfluous information. At the same time, it is the lack of adequate preparation for reporting is the cause of such information redundancy. Especially often do not think about the main classifier of management reporting, they forget to clearly define the goals. As a consequence, reports are superficious.

Those who like to add additional data to the report can take advantage of the special features of specialized software products that allow display not all indicators on the screen. On the one hand, you can immediately in the settings, it is possible to provide all potentially interesting indicators for a specific report, but on the other - when visualizing it is highlighted only some of them.

It is important to understand that this or that indicator may be different in different periods of time. Thus, in the company on road construction, top managers require the subdivisions of production to provide daily reporting. Despite the fact that remote works always provide for greater control, such reports due to the fact that every day was compiled, had significance for a common cause of only 30%. Thus, this approach was simply an empty spending time of employees of the DRSU (road repair construction sites).

So, all information of management reporting should be useful and promote decision-making, as well as the assessment of past, present and future events, which in turn allows you to correct previous estimates or confirm them.

3. Reliability (reliability)

Despite the fact that, in contrast to the accounting statements, the managerial does not need scrupulous accuracy, all the same, this characteristic is very important when drawing up a report. The fact is that sometimes the manager is most importantly obtained to obtain a relatively accurate report, but in a strictly designated time, rather than the reporting, tired to the smallest detail, but with a delay. However, this does not mean that management reporting does not require accuracy.

Highlight: The managerial report must display the real state of the organization and do not contain significant errors.

It is important to fulfill certain conditions to ensure reliable management reporting.

4. Truthfulness

This condition suggests that the report should reflect the truthful operations and other events that were grounds for its preparation. The absence of truthful information sometimes takes place due to the difficulties of identifying events and their assessment. This can occur while filling out the report and data entry, especially if the input is carried out on the basis of the primary documentation, in which it is impossible to clearly determine the analytics. Another happens when the primary was not accepted on time, and the internal primary document contained some errors.

5. Neutrality

This condition is that the information provided should be unbiased and does not affect decision-making in order to achieve a planned result. Although the absence of neutrality is often found when managers are too hoping for their intuition. In other words, they keep the finished solution in their head, and the management report is perceived only as a confirmation tool for this decision. Then the information can simply be driven under the most ready-made result, albeit unconsciously.

Such adjustment of information can be enclosed to exclude from the management reporting of those indicators that clearly demonstrate the weaknesses implemented or only the upcoming decision. Also in order to adjust the report under the picture ripened in the head, another accounting policy can be applied during the calculation of indicators.

The fact is that the same indicators often have different meanings depending on the use of different recognition and evaluation principles from each other. This method of adjusting information can be successfully applied during the development of planned management reports (budgets), since in fact, reporting can be obtained, solely based on previously entered data, and therefore management accounting policies cannot be easily changed.

It is important to understand that management accounting policies initially can be chosen in such a way that when it is used, those indicators that interest the owners of the company would look more attractive.

6. The predominance of the essence of the legal form

To ensure the accuracy of information, they must be submitted, taking into account their economic entity and reality, and not only in accordance with their legal form. It is clear that this condition is directly related to policies of management accounting, and even more precisely - to any of its differences from accounting policies.

7. Carefulness (conservatism)

This concept implies observance of caution in the formation of judgments within the framework of reporting, especially under uncertainty. Do not overestimate your assets and undertake commitments.

If the degree of uncertainty is very large, the events should be disclosed solely in the notes to the report. In other words, the report should not be embellished in such a way that he most like the manager or the owner of the enterprise.

8. Comparability

It is important to understand that with a frequent change of management reporting formats, to compare, monitor and analyze the dynamics of indicators of such documents will be extremely difficult.

Of course, not in all cases immediately it turns out to create the optimal form of management reporting. And if you want to end to be sure of the completeness of the form, as a rule, it takes more than once to make a management report so that it is rolled out on the numbers.

There are various adjustments of management reporting formats, but subsequently it is better not to change the form of reports without much need. This need may arise in connection with the change of the company's strategy, which will entail planning and control of any new indicators previously not used in the preparation of the report.

With such a situation, the management reporting format may be different, but the organization, as a rule, rarely changes the strategy, and therefore, the form of the report varies extremely rarely.

The composition and number of reports may undergo changes for other reasons. For example, the company uses the budget management system, and the planning model due to any reasons was detailed, which became the basis for the appearance of budgets and indicators. In this case, it is also necessary to increase the number and composition of actual management reporting, so that the factory reports can be obtained for subsequent analysis.

These actions in turn may entail the change in the already existing formats of actual management reporting.

Opinion expert

Principles for the formation of informative management reporting

Pavel Menshikov,

chief Accountant of the Department of Director General Mostotrest, Deputy Chief Accountant Mostotrest, Moscow

There are several principles that can help you organize management accounts in such a way that you do not spend the study of the reporting documents unnecessary time.

  1. Nothing needs to complicate. It is better to apply the form of a table. If you can make a graphic report, you should use the construction of graphs and charts.
  2. Follow evaluate the state of the company for three main forms: Balance, Profit and Loss Statement and Cash Movement Report. In small enterprises, with the help of these forms, it is possible to analyze the state of assets and evaluate the results of the activity. But if the management accounting policy differs from accounting, then the forms should not be accounting, but managerial.
  3. Worth it share the main indicators of management reporting on absolute and relative. Absolute should be considered indicators of revenue, profits, margin income and cost. At the same time, they can be represented not only in monetary terms, but also in kind. The second group of indicators is intended to be able to assess the effectiveness of the company, divisions and workers. It is best to analyze these indicators in the dynamics. Plus, the relative indicators make it possible to compare the main indicators of your company with the indicators of other industry companies.
  4. The larger your organization, the more often it is control the main indicators (once a month or a week). At the same time, the head must personally evaluate a small group of indicators, that is, it is not necessary to take on a lot. It is better to give the appropriate instructions to your chammas, which will also follow some indicators own.
  5. Collect high-quality primary information. So, if the production unit without weighing is released from a warehouse two bags of sugar with a normative mass of 50 kg each, then you need to fix the vacation of two 50 kilogram bags, and not 100 kg of sugar. Of course, we can take into account weight and kilograms, but only when the released materials weighed, because the regulatory mass is sometimes significantly different from the actual. Also a frequent problem is the quality of databases. For example, one and the same counterparty can be submitted to the database under different names (Stroymarket, Stroymarket, Stroy Market, Stroy-Market). A similar problem occurs when writing the title of materials. To eliminate the inaccuracies of this kind, it is worth working for good competent automation. In small organizations, it is best to use Excel. But if the company is large and managerial reporting amounts to several dozen people, then it is necessary to apply a specialized information system.
  6. Watch out for a single database. Often, information, let's say about receivables, and in the sales directorate, and in the financial service, and in accounting. At the same time, each unit has its personal accounting microsystem. In order to be able to quickly get a qualitative management report, it is necessary to use a single information system and rigidly obligate all units to keep accounting only in it. Thus, for example, shipping products from a warehouse or to give consumables for production, it is only possible to enter the system and printing the accompanying document. In this case, it will be possible only if all the necessary data was correctly entered into the database.

Management Reporting: Main Stages

Stage 1.Drawing up a list of people who need to enjoy managerial reporting

This list should reflect the general and commercial directors, top managers and sales managers, because all it is sooner or late managerial reporting.

Stage 2.Collecting existing management reporting in the form in which it is

In cases where the accounting reporting is used, it is necessary to include it.

Stage 3.Drawing up matrix for management reporting

The compilation of this matrix involves the input of the following information: report users / types of reports, at the intersection It is necessary to register that this particular user looks in the report (literally where it looks in which cell, to which result is to detect useless information or information in inconvenient form, When the report user accounts for something else on the calculator).

In addition, it is necessary to set appropriate questions to determine which users are missing in the report. So, if the company exists indicators used as control and targeted, then you need to include them in the table in the cells of those reports from which their values \u200b\u200bare taken. This is extremely important during the preparation of management reporting.

Table. Management reporting matrix

Reporting data on Holding sales. Target - Sales

Reporting data for sales of each branch. Check indicator - sales of each branch division

Report on receivables Control indicators - branch receivables receivables

Report on circulation costs. Control indicator - margin

CEO

Draws attention to the total sales. Necessary: \u200b\u200bresult by region

Draws attention to the result of sales of all branches. It is necessary: \u200b\u200bthe result on the nomenclature groups

Draws attention to the total of overdue debts

Compare the total amount of costs with margin.

Disadvantages: Lack of margin indicator in the same report.

It is not necessary to decipher the costs of trifles.

It is necessary: \u200b\u200bto separate the cost of production from administrative expenses

Commercial Director

Draws attention to the amount of sales in all regions.

Draws attention to the amount of sales for each manager. Necessary: \u200b\u200btrack the number of new customers for each manager

Draws attention to overdue and total debt for each manager

At this stage, it turns out a picture of how things really are. From it it is necessary to highlight the most rational indicators so that with new managerial accounting everything was used earlier.

Stage 4.Development and creation of a managerial classifier

At this stage, it is important to create a competent classifier, where expenses and income will be reflected, as well as cash flow (BDDS) and the budget of investments, and also contain articles for revolutions between the balance sheets.

Stage 5.Deciding on what other analytical reference books are needed

The next step is to make a decision on what other analytics reference books are needed in the preparation of management reporting. Suppose, paying attention to the table, described above, can immediately conclude that reference books (branches), by regions, nomenclature groups, according to managers, and may also be necessary for the costs and counterparties. Monetary reporting, as a rule, needs analytical records of the storage of funds (settlement accounts, cash registers, accountable persons). These directories need to be taken from the already developed databases (from the accounting database you can take a directory for counterparties, for example) or independently make new ones, but it is necessary to agree on them with all those who enjoy a report on this particular benefit.

Stage 6.Drawing up major reporting forms

Now it is necessary to develop basic forms of management reporting (BDR, BDDS, BALANCE). You need to check that the reporting contains exactly the information that guide has previously used. Consequently, forms must be prepared on real data. So, if the forms are developed in the Excel table, do not forget to add all the necessary analytical accounting to it (let's say, according to turnovers), withdraw the regions or nomenclature groups, and the columns are made by months.

If the "Business Planning" software is used to create forms, you can only get by filling out the "Budget forms" directory and then check for output in the report decoding report that you need.

Stage 7.Drawing up the remaining forms of reporting

Based on the used analytical directories, you need to create other forms of management reporting. Initially, the forms should be made that will be similar to those already used in the organization. Next, it is worth considering the materials similar to your company company and evaluate their users, then you need to put forward a proposal to implement additional reports.

Step 8.Adding formulas and calculated values \u200b\u200bto the created reports

At this stage, the documentation begins to gain the type of management reporting.

Stage 9.Filling out reporting

Fill out the forms you need only by those data that are real, in the same month. It is also necessary to negotiate filled out forms with those persons who used to be prepared by management reporting.

Stage 10.Meeting reporting with users

Filled reporting should be consistent with users. At the same time, there is a chance that you have to correct and refine management reporting documentation in accordance with the comments received.

So, the preparation of management reporting occurs in stages. At the same time, each of them is very important, and you need to follow its correct passage. Only then the report will be competently compiled.

What frequency it is necessary to draw up management reporting

How often it is necessary to compile management reporting, each leader decides individually. The main criterion for choosing a frequency is the timeliness of decision-based decisions based on reports. At the same time, for the lower levels of management, the efficiency of decision making is more important than the upper. Therefore, the frequency of reporting at the lower levels should be more frequent.

It is customary to allocate three conditional basic periods of giving management reporting.

  1. Short-termreporting is compiled as often as possible - every day or once a week. But the final term depends solely on the specifics of production. Such reports are formed on the basis of primary documents on different aspects. In other words, this is the most relevant information for the company reflecting the most important and dynamically changing parties of production. Most often, such a form of management reporting uses managers of medium-sized levels that make their decisions based on document data.
  2. Medium-termreporting is formed weekly or monthly. It combines the current and predicted indicators. So you can track the change in raw materials prices using data for the completed month and predicting further changes based on changing market prices. The main consumers of these reports are top managers and company managers. Solutions that are accepted on the basis of these reports are particularly important for the company and significantly affect the results of its activities.
  3. Periodic (or long-term) Management reports are drawn up monthly or 1 time in half a year. The main goal is to establish contact with financial statements to reflect changes and relationships between managerial indicators and reporting data. Due to the fact that in each company there are quarterly reports, this type of management reporting is an exclusively strategic and analytical tool. Since responding to situational changes in accordance with financial statements, it is necessary quarterly, the most important thing is the most importantly, the short-term management reporting, reflecting changes in the dynamics.

Despite the fact that the formation of reporting is determined individually by the company itself, it is extremely important to draw up the appropriate schedule, because such reports are an integral part of the overall internal control system in the organization.

If timely feedback is absent, there is a high probability of loss of control by the head. Then all goals lose their relevance and remain simply unrealized plans recorded on paper. If there is no way to promptly learn how effective the organization's activities, the manager loses the opportunity to make adjustments aimed at solving various problems. Internal management reporting is an important tool in the handers of the manager, which is greater responsible for achieving all the intended goals and fulfill all the tasks.

The most important lack of internal reports in traditional approaches to their formation is excessive attention to errors instead of providing the information necessary for top managers, which will indeed make effective actions. Thus, feedback is often directed only to the organization of audit or search for omissions that are no longer possible, and the emphasis on past events leaves no opportunity to work with the prospect.

What difficulties may be associated management reporting

Experts in the field of business and management believe that the main problem in the preparation of management reporting is the absence of sufficient loyalty to such documentation from both employees of the organization and in some cases on the part of the management and business owners. Often it is due to the reluctance to spend time on the formation of additional reports, after all, the company and without this have obligations to provide certain official documents to state bodies, which also takes a lot of time and effort. Therefore, it happens that management reporting is simply not perceived as a documentation that really costs. Moreover, not only the director can think so, but also the owners of the business, as mentioned above. The fact is that often leadership perceives such statements as another method for the introduction of representatives of the management (management) is misleading, especially when it becomes necessary to divert attention from any unsuccessful production indicators.

What could be the solution to this problem? Typically analysts are advised to start from the steering level. In the preparation of management reports, top managers should be interested in the first place, because they can form all the necessary local legal acts, for which other employees will have to contribute to the formation of relevant documents.

Other difficulty in solving this problem is the need to continuously generate new approaches to the interpretation of the numbers, which are contained in the report. There is a conditionality of this fact due to changes in the structure of business production. When working with accounting and financial statements, there is no need to interpret the numbers, which means that standardized forms can be used in which the corresponding indicators are recorded.

Management reporting is designed to solve other tasks. First of all, these reports are needed by the company itself, and not by any government agencies (unlike the accounting and financial forms of reporting). Even when the interpretation of the numbers that are contained in management reporting, with a given structure of production during a certain period played a positive role, there is no guarantee that it will be also useful provided that the characteristics of certain business processes have changed.

If there are any changes in the production field, the compiler of reporting documentation will be forced to improve the approaches to the interpretation of digital data. This is a sufficiently long process, because the compiler will most likely have to spend not only his time, but also the personal time of colleagues to which he can seek advice, an opinion either for certain supporting indicators, which reflect the results of the enterprise.

An excellent solution to this problem is the established communications between colleagues (for example, meetings where current indicators are considered and measures are being developed for their improvement, including through the introduction of new reporting methods, such as managerial).

What suggests the analysis of management reporting

It is extremely important not only to properly compile management reporting, but also correctly interpret the obtained indicators and data. Not only spreadsheets, but also graphic images (including diagrams) with text descriptions should be used for better and more visual perception. It will be useful to a comparative analysis of the indicators of the current period with similar over the past years, etc.

The purpose of analyzing management reporting is to assess the effectiveness of the enterprise's activities during the reporting period.

Analytical work is carried out in order to evaluate:

  • calculation of operating and clean, as well as other types of profits;
  • the ratio of borrowed capital and its own, the possibility of paying the obligations assumed.

It is necessary to use groups of financial indicators of liquidity, business activity, solvency, market activity and capital structure. They are developed on the basis of the basic needs of the management, and they can be applied not only in the aggregate, but also separately.

To indicators that are further planned to be used to make strategic decisions, it is necessary to be extremely careful. In cases where inaccurate data, inaccurate data is applied or coarse methodological errors are applied, you are highly risky, as you can create serious errors within the management, which will entail considerable financial difficulties.

Another important point is an understanding of the fundamentally important differences between the Russian and international financial statements. The fact is that some concepts when transferring to Russian can be interpreted in different ways (for example, in the Russian Federation, monetary resources are understood as funds that are at the cashier's office or on a bank account, and within the framework of international standards for monetary resources still attribute All high-liquid assets that can be translated into the foreign exchange equivalent). Another important difference is the accounting method: so, in the Russian Federation, the method of accrual is sometimes used, while only the cash method is accepted according to IFRS.

IFRS presents the most necessary information necessary for management accounting, it is more quickly and often used by financial directors.

When you need automation of management reporting

To start automating management reporting is when you already have developed procedures for keeping such such, or in cases where you can initially compile a clear and competent technical task for programmers who will work with the selected software product.

The introduction of automated management reporting should be gradual. You need to start with the automation of financial accounting. The budget of the movements of financial resources is in detail the points of responsibility, entry articles, expenses. All this is just a controlled accounting process.

If there is no management accounting in the company or is in the process of development, then it is worth considering the approach "Transition from simple to complex".

For competent compilation of management reporting, you need:

  • determine the scheme of points of responsibility;
  • establish the format of the budget of funds, which requires competent allocation of articles of this budget;
  • make an application for payment.

At the same time, to automate the management reporting system, it is not necessary to acquire an expensive ERP system. There is a large selection of accounting programs that will allow you to automate management reporting.

If you still do not have 1C to start automating management reporting, then you should purchase this program. It helps to automatically track the movement of money. Of course, there are options for more expensive programs, but you need to consider the following.

  1. Your company does not necessarily need a wide range of functions.
  2. If management reporting is not yet developed in your organization, then you cannot immediately compile a competent technical task programmers. In addition, the more directions of your business activity you plan to put accounting, the more time you need for the appropriate settings.
  3. Not every standard solution that the consultant will offer you, it is suitable for your business. If you want to keep up with the standards, then you need to either change your production under the program, or make a program for your production, but not all software products are amenable to such processing. In addition, this will take time.
  4. Do not think that if you paid a lot of money known to the Supplier, then successful automation is guaranteed. In any case, you will have to create a technical task on your own, since if it is representatives of the supplier company, they are unlikely to be able to take into account all the important nuances of your business.

When the well-established management procedures are missing, the preparation and coordination of the technical task will require the work of all aspects of your business from the very beginning. At the same time, it is extremely important not to spend the time to be wasted and not to fill the whole process.

Formation of management reporting with outsourcing

If you decide to start using management reporting in your organization, but do not understand why you need to start, then you should choose specialists in this area and entrust this matter to them. Here are the main signs that characterize these pros in this area.

  1. Responsibility of reporting

In cases where the reporting documentation is provided slowly and late, the data is terrified. Such reports are not valuable at all, because it is impossible to make the right decision based on the data that has lost the relevance.

In cases where the reporting comes up much later than the request from the head, it is not valuable - think about the introduction of a new system from another outsourcing company.

  1. Accuracy of information

In cases where it is impossible to confirm the data, and employees cannot explain from where those or other digital data originate, it is worth a conclusion - the system is far from excellence or do not know how to competently use it. For any scenaries, those who have introduced such a management reporting system are guilty.

  1. Reporting is provided in a simple and understandable format

Most often, managers do not possess such time to devote themselves to understanding complex tables and graphs, as well as searching for important information among extra data. Therefore, managerial reporting should be understandable, concise and structured. However, it is worth remembering that excessive detailing is as bad as unnecessary information. Thus, it is necessary to find a golden middle.

Information about experts

Evgeny Kabanov, General Director of the Kubanagroprod, Krasnodar Territory Group of Companies. Kubanagroprod GK is an agro-industrial vertically integrated company controlling the entire technological process of producing a feed soybean protein for farm animals (the purchase of soybeans, storage, processing) and the sale of finite products - soy protein and soybean oil. The group includes three companies in the Krasnodar Territory and a sales office in Moscow. Form of organization: LLC. Location: Krasnodar Edge

Natalia Gazizova, head of the representative office of Epicor Scala CIS, Moscow. EPICOR SCALA CIS has been developing and implementing the ERP, SCM control automation information systems (English. Supply Chain Management - integrated management of material and information flows throughout the supply chain), CRM and ESA (Enterprise Service Automation - Automation of service companies and design - Oriented business). The company has offices in Moscow, St. Petersburg, Alma-Ata and Kiev. Headquarters is located in Irwin (USA, California), offices and branches are located worldwide. Among the corporate clients in the CIS: Novotel, Marriott, Hyatt, Tetra Pak, ABB, Danone, CPC Foods, Factory "Bolshevik", Chelyabinsk Electrometallurgical Plant, OJSC Svetogorsk, Novorossiysk shipping company.

Pavel Menshikov, Chief Accountant of the Department of Director General Mostotrest, Deputy Chief Accountant Mostotrest, Moscow. Pavel Menshikov graduated from the Moscow Institute of Steel and Alloys (MISIS). An expert on building efficiently working units and the introduction of corporate information systems. Before joining Mostotrest, he led the consulting projects in different industries (from the service sector to industry; carried out orders of the largest industrial holdings, including the combined metallurgical company and Uralkali). Conducts managerial accounting seminars, document management and organizational development. The author of the book "Accounting without ablians and problems. How to establish the effective work of accounting. Practical guide for director and accountant »(M.: Good Book, 2010).

All enterprises according to the law are obliged to keep accounting and amount to reporting. However, standard accounting reporting does not contain all the information necessary for efficient business management. Therefore, at most businesses, except accounting, management reports are also drawn up. Consider how management reporting is prepared and its analysis.

The principles on which management reporting formation is based

The main difference of management reporting from accounting is its focus on the needs of domestic users. Management reporting preparation is inextricably linked with the budgeting process. In essence, it is the same process, and internal management reports are used for purposes, primarily related to the control of budget execution.

Budgeting and Management Reporting Basics are based on the following principles. :

  1. Timely - all information should be collected and provided in the time limit necessary to ensure effective management.
  2. Sufficiency - information must be complete, but not excessive.
  3. Objectivity - data must comply with the real state of the enterprise.
  4. Compariability is an objective comparison of planned figures with actual, as well as indicators for different reporting periods.
  5. Privacy - information should be provided to users in accordance with their official duties.
  6. Economic feasibility - the cost of collecting and processing information should not exceed the economic benefit from its use.

Management Reporting analysis is carried out according to the same principles that are used for accounting. The structure of the balance is analyzed, the cost of costs is compared with the plan and with previous periods, various relative indicators are determined - profitability, liquidity, etc.

Essential difference here is frequency. Accounting is drawn up and analyzed quarterly, managerial - much more often. As a rule, the main management reports are drawn up monthly. But according to a number of indicators (for example, the volume of production, sales, money flow) information can be provided even more often - contractile, weekly and even daily.

Consequently, opportunities for operational analysis in this case are much more. This allows the management of the company "Real-time" to respond to a changing situation in the market.

Forms of management reporting

The preparation of management reporting should provide its users with full information about all aspects of the enterprise. For this purpose, the following main forms are included in the management reporting:

  1. Management balance. In general, he, as a rule, repeats the structure of accounting. Differences may be in assessing the value of individual groups of assets or liabilities. For example, other methods of depreciation can be used for management accounting, in which case the cost of fixed assets and intangible assets will differ.
  2. Income statement. The form of the report here also usually resembles an accounting analogue. However, the indicators themselves may differ significantly, because The distribution of income and expenses under articles in managerial accounting may not comply with the principles adopted in accounting.
  3. Report on cash flow. This form responds to the favorite issue of many executives: "Why is the profit on the report, and there is no money on the account?". This report shows the structure of the inflow and cash outflow. Typically, cash flows are considered separately according to the main, investment and financial activities.

Thus, the report becomes "volumetric", the results of the enterprise are considered from different parties, for each of which "answers" a separate form of management reporting. A sample of filling out reports on financial results and on cash flow is given below.

09.03.2013

The article discusses the most common problems associated with the preparation of management reporting and ways to solve them. The optimal composition of managerial reporting is given so that it is not overloaded and at the same time gave users the information necessary for them to make management decisions.

It is no secret that often the business owner is not satisfied with the composition and quality of the management reports received by him.

That reporting to prepare with a large delay, then its accuracy is questionable, after a time, the management reporting formats are reworted.

The situation is distributed when there is no universal set of management reporting forms.

The most common claims from the owner in this case are the following:

  1. Reporting is granted inoperative: From the moment of the question before receiving the answer, there may be several hours, and in particularly severe cases - days. It is clear that when the data is finally ready, they may lose the relevance. Accept the competent managerial solution based on them will be problematic, you will have to connect intuition. The owner sets the following question, for the response to which the financiers take a few hours / days ... There is no need to talk about a high manageability of the business in this case.

  2. Causes doubt accounting reporting. Often, the owner, having received the information and starting to ask questions, cannot receive from the financiers of a quick, competent response (see the cause number 1), or having received decryption, finds inaccuracies in them, and finding something one, starts doubting all the numbers. Either the owner is not clear the reporting process itself and from this appears distrust of financiers. I do not want to say that the owner must understand the technology of reporting, but it must be sure that the financiers have all the mechanisms for obtaining reliable reporting, and the task of the financial director, in case of the owner of the issues, simply explain from which the specific figure comes from .

  3. Report format is complicated for perception. Many owners complain that they are difficult for them to independently read and understand bulky tables, made by the figures that they provide financiers. Often, the owner does not have financial education, or in virtue of individual characteristics it is difficult to read and understand the numbers, it better perceives information on the charts.

All these reasons in aggregate can lead to a vapor situation, when the owner throws financiers with new and new requests, and those for answering them are preparing all new and new forms of management reporting.

Sometimes the owner asks to decipher the information provided and that such a decoding prepare a financier literally in the knee in a short time invents a new form.

And since one question, studying management reporting, the owner, as a rule, is not limited, the number of such forms is growing and multiplies in geometric progression. Do I need to say that any financier also has current workload? The lack of an approved and understandable list of reporting forms, the timing of their provision and responsible persons entails recycling and increases the level of stress in the financial department.

The first thing you should always remember: composition of management reporting Must be sufficient, but not excessive.

The quality of management decisions does not depend on the number of prepared reports, and on how quickly they are preparing how much information is reliable, as far as it is readable and understandable.

In this way,

  • formation rate (timeliness)
  • data reliability
  • easy to perceive end user
  • not overloading reporting with unnecessary forms

This, in my opinion, the main criteria, which ideally, must meet management reporting in any business.

The management of management reporting, as already mentioned more than once (you can read more in the article. "Communication and the differences of management accounting from accounting"), Includes operational (or auxiliary) and final financial budgets.

Both operational and financial budgets should be formed both according to the plan and in fact. In essence, the operations budgets are decoding the figures of financial budgets. If their composition is sufficient, no additional decoding to manage reports is not required.

In general, the recipe for the solution of the above problems in the preparation of management reporting is very simple. Here it is:

  1. Step 1: Determine the full list of operating budgets.

For example, for a small retail chain network, this list may be like this:

  • Revenue plan
  • Calculation of planned cost
  • Rental plan and utilities in the details of commercial points and control apparatus (office rental and central distribution warehouse).
  • Plan for commercial and administrative and management costs of the management apparatus.
  • Plan for salary and deductions from salaries
  • Plan for the salary and deductions of employees of the management apparatus
  • Plan for taxes: VAT, income tax, property tax, USN, UNVD, etc.
  • Depreciation plan
  • Plan on direct costs: in the details of sales points and control apparatus

The composition of operational budgets for the manufacturing enterprise will be somewhat more complicated and wider, the principle, I think, is clear.

BUT list of financial budgets For any business will always be like this:

  • Budget of income and expenses (BDR)
  • Budget Money Money (BDDS)
  • Management Balance
  • Changes in capital (as an additional form)
  1. Step 2:For each operating budget to register and approve the frequency of compilation (options: daily, monthly, quarterly), preparation and approval terms. Register and approve those responsible. All this is true both to prepare planned and for the preparation of actual budgets.
  2. Step 3:For each financial budget to register and approve the frequency of compilation (options: daily, for example, BDDS, monthly, quarterly), preparation and coordination time. Register and approve those responsible. All this is also true both to prepare planned and to compile actual budgets.

Tip 1:

I would recommend to prescribe the timing of the preparation and coordination of planned budgets separately from the timing of preparation and coordination of actual budgets. Because the planning process (the budget period), in contrast to the preparation of actual budgets, first, is more stretched over time, and, secondly, the mechanism of formation of plans is different from the mechanism of evidence of the actual data.

Tip 2:

When establishing the timing of preparation and delivery of operational budgets (both planned and actual), you need to go "from the end", i.e. First, determine the date to which you need to get the final financial budgets. And further, pushing out this date, "unwind" a chain of budgets back. Thus, the date of the beginning of the budget period will be calculated for planning.

With the actual budgets, the situation is different: it is necessary to repel from the readiness of the operational budgets, because They depend on the deadlines, to which the primary documents can be collected, and they go to the date of delivery of actual financial budgets.

  1. Step 4: Develop unified formats of operating and financial budgets. Here, the recommendation is simple: it is necessary to strive to ensure that the formats of operating and financial budgets are unified for all divisions of the company. This is especially important to perform and monitor for a holding-type company, which have several business areas, as well as for companies with a developed branch network.

If this requirement does not fulfill, the data consolidation will take a volatile time and will lead to an increase in the number of errors.

Here, in fact, the entire algorithm to solve the most common problems associated with the preparation of management reporting.

You can say that it is easy to argue in theory, and in practice some recommendations are not enough.

Yes and no. If to solve problems with managerial reporting to take the above algorithm and clearly in accordance with it, we think everything and implement, I assure you, your most difficult problems with managerial reporting will come. Another thing is that yes, you will have to work hard for this very much. Think up the composition of the budgets, their relationship and deadlines are not easy. But implemented.

I wish you all success in this endeavor! You can send my questions by email.

COURSE WORK

by subject

"Accounting Management Accounting"

"Internal Management Reporting"

Introduction

1.1 Concept and types of reporting

1.3 Management Reporting users and periods of its presentation

Chapter 2. Using management reporting on the example of LLC "Cherk"

2.1 Feedback in the operational management system

2.2 forms of internal reports

2.3 Analytical calculations

Conclusion

Reporting - the final stage of the accounting process, so it consists of generalizing final indicators that are obtained at the end of the reporting period using appropriate processing of current accounting data. Reporting may contain both quantitative and qualitative indicators, both in value and in physical expressions. Thus, the reporting is a source of information for analyzing and making decisions.

The purpose of the course work is to study management reporting.

The tasks of this course work are:

study of the objectives of creating management reporting;

study of the types of management reporting;

study of managerial reporting requirements;

analysis of management information.

The subject of the study is the management reporting of the organization.

The methodological and methodological basis for writing a course work are federal laws of the Russian Federation, accounting provisions (PBUs), educational and reference literature.

Chapter 1. Internal Management Reporting

1.1 Concept and types of reporting

Applied in practice, reporting can be divided into several types of three main characteristics:

1) the amount of information provided in the report;

2) the purpose of drawing up;

3) reporting period.

In terms of information, private and overall reporting distinguish. Private reporting contains information on the results of the activities of any structural unit of the enterprise or on the individual areas of its activities, or on the results of activities on specific geographic regions (branches). Overall reporting characterizes the results of the company as a whole.

Depending on the purpose of compiling, the swelling can be external and internal. External reporting serves as a means of informing users interested in the nature of the activity, profitability and property position of the enterprise. The preparation of internal reporting is caused by the need of intrafyrnamental management.

Depending on the period that covers the reporting components, distinguishes periodic and annual reporting. Periodic reporting is reporting, drawn up at certain intervals (day, week, decade, month, quarter, half a year). Annual reporting is drawn up in terms, regulated by the current regulatory acts of the Russian Federation.

Management Reporting - Internal Reporting, i.e. Reporting on the conditions and results of the activities of the structural divisions of the enterprise, certain areas of its activities, as well as the results of the activities of the regions.

The purpose of the management of management reporting is to meet the information needs of intra-profit management by providing value and natural indicators to evaluate and monitor, predict and plan the activities of the structural divisions of the enterprise (individual areas of its activities), as well as specific managers.

The purpose of the preparation of internal reporting determines its periodicity and shapes, as well as a set of indicators. The accuracy and amount of data cited depend on the organizational and technological and economic features inherent in the enterprise and the specific object of management accounting, the goal of management in relation to this accounting object. In this regard, the development of internal reporting is the main task of the enterprise. The content, forms, deadlines and responsibilities of presenting this reporting, as well as users depend on the terms of management at a particular enterprise.

1.2 Management Reporting System

The management reporting system is one of the most complex and important elements of management accounting, allowing the management of the enterprise, on the one hand, to understand the limits of its possibilities in obtaining the necessary information from the performers, as well as the possibilities of information and technical services, and on the other hand, to get this information decorated properly, i.e. In the form in which they are convenient to use for making management decisions.

In addition, the management reporting system is the result of any activity of management accounting or, in other words, the product of its activity, what it is created in the enterprise.

When forming management reporting system requires:

determine the form, the term of providing a report and responsible for its preparation;

make a scheme for the formation of management reports, identify the owners of the source information;

reliable the responsible powers of the coordinator, i.e. administratively resolve it to obtain information from its owners;

determine the information users and the form in which it will be provided.

For successful project management, you must perform a number of actions.

Stage 1. To form a Project Management Committee

The tasks of this committee are:

1) make decisions on approval of the above standards;

2) take operational solutions in the process of manufacturing work;

3) to evaluate the activities of groups in the field and, if necessary, draw conclusions.

The process of implementing the management reporting system The emergence of numerous situations when it is necessary to make decisions, for example, on the standardization of procedures and reference books, project financing, which requires a group of operational response, endowed with the maximum possible powers. In principle, the analysis of the process can carry out one person, but the high criticalness of the decisions taken and their deep relationship with the most important business processes of the Company requires adoption of suspended decisions with the participation of the maximum number of representatives of stakeholders.

Stage 2. To form a working (project) group in the central office and on the ground (or branches, if any)

Such a group solves in the process of creating a management reporting system, the following tasks:

1) implement the implementation of the system;

2) to administer the system and applications;

3) customize options for a particular branch (if any);

4) lead the process and control it in general;

5) prepare questions for approval of the Managing Committee;

6) Implement direct contacts with the supplier.

If the company has a complex structure, it is necessary to have additional personnel to ensure the development and maintenance of the company's accounting and management standards, possibly in the composition of economic departments (accounting, planned department) or in the form of an independent division.

Stage 3. To form corporate standards

The following standards are formed:

1) financial accounting (account plan, accounting policies, analytical accounting);

2) material accounting (reference book - materials codifier, broadcasting standards, financial documents, accounting registers, accompanying documents, principles of warehouse management in the context of materials);

3) production accounting (the principles of calculating the cost, the principles of class assignment, the principles of accounting for auxiliary and by-products).

The above list of corporate standards is approximate and largely depends on the type of activity of the company and its current state (size, presence or absence of branches, etc.).

The level of detailing corporate standards depends on the degree of integration of financial processes of the head organization and its divisions.

Must provide all users with the information necessary for decision-making. Therefore, you need to decide with the list of management reports themselves, and with their content.

It should be noted that this work, unfortunately, has no clear and unambiguous technology. It can be said that the development of the forms of management reporting is a kind of art.

After all, you need to be able to develop such formats of management reports, which, on the one hand, would contain really useful information, and on the other hand, the cost of obtaining this information would be acceptable to the company's manual.

By the way, the ratio of the ratio of utility and cost will occur throughout the project to formulate and automate management accounting.

Thus, this article discusses all practical aspects related to the development of the management reporting system. In particular, when developing management reporting formats, it is necessary to take into account the main characteristics that they must satisfy.

In addition, this article presents the classification of management reporting and indicators that can be contained in it.

Characteristics of management reporting

Management reports mainly can only be characterized by quality requirements. Although some companies can use and quantitative parameters.

Perhaps the most common quantitative characteristic of management reporting is the number of pages in the managerial report. It is believed that one report should be placed on one page, otherwise it will be very difficult to analyze. True, it does not specify what page format is about which font.

I was in some companies strictly followed by this principle, see reports printed on the A3 page, and very small font. Yes, formally, these reports were posted on one page, but it was very difficult to use them.

In general, it is not so straightforward to apply this quantitative restriction. If the management report is placed on two pages of A4 format, and at the same time, indeed, no data of such a management report are unnecessary, it is not at all necessary to print it in very small font to post on one page.

Although quite often with a more attentive study of such long managerial reports, it turns out that they can be safely placed on one page. In one company, for example, was a managerial report, which, despite the use of a very small font, barely placed on two pages.

Moreover, the essential articles of the management report are not detailed enough, and less significant articles were presented with excessive details. After a simple procedure (reduced excessive detailing of irrelevant articles), the management report was unable to fit on one page, and they became much easier to use in practice.

Sometimes management reporting make "big", because just in case, it is laid in it the maximum possible detail. For example, this article of the management report, as "revenue from implementation", in the sales report can be printed with detail to groups, and it is possible with detail to a specific position.

It is clear that in the second case, the management report may turn out much more cumbersome. By the way, so that there are no such problems with the visualization of management reporting, it can be viewed in electronic form using a software product, which, if necessary, allows you to deploy one or another hierarchical indicator.

So, if you return to the consideration of the qualitative characteristics of management reporting, then the most important can be allocated as follows:

  • compliance;
  • significance;
  • reliability (reliability);
  • comparability.

    Comprehensibility of management reporting

    Immediately it should be noted that the knowledge of the purpose of preparing a specific management report can significantly increase its understandability for the user. The objectives of management reports should be determined by the development of a management reporting classifier.

    So, it is obvious that management reporting should be understood by users, but here it is necessary to make one important reservation. In order to understand managers, users must have certain knowledge. In particular, you need to know at least the foundations of the economy and finance.

    Of course, the company's managers are not at all obliged to know in detail the methodology for the formation of management reporting, but they must understand the meaning of each indicator of the management report used by them. These knowledge includes, among other things, knowledge of management accounting policies, since it is directly dependent on the importance of most managerial reporting indicators.

    Therefore, in the framework of the project to formulate and automate management accounting, training should be scheduled, including the company's managers. By the way, the lack of learning in such projects is very negatively affecting the final results, but, nevertheless, it is very often given too little attention to this issue.

    Thus, the information contained in management reporting should be available to understand users familiar with the principles of management accounting and the foundations of the economy and finance.

    The significance of management reporting

    In addition to clearness, managerial reports must have another important property - contain meaningful information. It would seem, it would be obvious that management reporting is preparing for decision-making, and not just in order to be. Nevertheless, quite often managerial reports are overloaded completely unnecessary data.

    Again, one of the reasons for such information congestion of management reporting is the lack of necessary preparation and planning of the project for management accounting.

    In particular, the management reporting classifier is not thought out in advance, report objectives are not defined, etc. As a result, it turns out that gradually almost all management reports are mad at completely unnecessary information. It is understood that unnecessary for this management report.

    By the way, lovers adding additional information to managerial reports, so to speak, just in case, can take advantage of the features of software products that allow you to display not all indicators on the screen. On the one hand, you can immediately in the settings provide all potentially interesting indicators for a specific report, but, on the other hand, when it is visualized, only a part of them is displayed.

    It should be noted that the significance of a particular indicator in managerial reports may depend on the period for which it is drawn up. For example, in one road construction company, the Office of Management requested from its production units (DRSU - road repair construction sites) scattered throughout the region, daily management reporting.

    It is clear that remote objects require operational control. But, as it turned out, when analyzing management reporting, among the indicators that were gathered every day, not more than 30% were significant. Preparation of all other indicators of daily reports was simply ineffective spending time of specialists working in the DRSU.

    So, the information contained in management reporting should be useful for decision making and help evaluate past, present and future events, confirm or correct past estimates.

    Reliability (reliability) of management reporting

    The reliability of management reporting is also quite logical characteristic as the two previous ones. Although one of the distinctions of management accounting from accounting is that it does not always require very scrupulous accuracy.

    After all, sometimes for the manager is much more important to obtain an absolutely accurate managerial report, but during the time limit, than the report, verified to a penny, but late. This remark does not mean that for managerial accounting, the accuracy does not matter at all.

    But the most important thing is that management reporting should disclose real activities and the state of affairs in the company, be free from significant errors.

    There are certain conditions for ensuring the reliability of management reporting:

  • truthfulness;
  • neutrality;
  • the predominance of essence over the legal form;
  • caution (conservatism).

    Truthfulness of management reporting

    Truthfulness means that management reporting should truthfully reflect operations and other events on the basis of which it is prepared. Insufficient truthfulness may be due to the difficulties of identifying events and their assessment.

    This can occur, for example, when filling out the values \u200b\u200bof the analyst during data entry into the accounting base, especially in cases where it is impossible to determine the analytics on the basis of primary documents.

    Or it may be so that the original of the primary document did not arrive on time, and the "internal" primary primary contained errors.

    Neutrality of management reporting

    Neutrality implies that the information contained in management reporting should be unpredictable and should not have an impact on decision-making in order to achieve a scheduled result. This can often be found in cases where managers are unnecessary to their intuition.

    That is, they already have a ready-made solution in the head, and with the help of the management report they just want to confirm its correctness. In such cases, a "fitting" of the managerial report under the ready-made result may occur. Naturally, here it is not about some conscious distortion of data.

    "Conditioning" can be concluded, for example, to exclusion from the management report of indicators, which explicitly show the cons of the prepared or already implemented solution. Another way to "fit" can be the use of other accounting policies in the calculation of some indicators.

    After all, the same indicators may have different meanings when using various principles for recognizing and evaluating economic operations. True, this method "fit" can be successfully applied, mainly when developing planned management reporting (budgets), because Actual reports can be obtained only on the basis of the information already entered, which means that management accounting policies are rather difficult to change.

    True, management accounting policy initially can be selected in such a way that when it is used, the indicators that interest the owners of the company would look more attractive.

    The predominance of essence over the legal form of management reports

    The predominance of entity over legal form is also quite a logical condition for ensuring the accuracy of management reporting.

    Events must be presented in accordance with their economic essence and economic reality, and not only with their legal form that do not always correspond to each other.

    Obviously, this condition is directly related to management accounting policies, more precisely, to the possible distinction between management accounting policies from accounting.

    Care (conservatism) of management reporting

    The carefulness or conservativeness of management reporting means that in the face of uncertainty it is necessary to abide by the formation of judgments so that the assets are not overestimated, and the obligations are underestimated.

    With a large degree of uncertainty, the event should be disclosed only in notes to reports. In other words, managerial reporting should not be "embellished" so that it is more like the management and / or owners of the company.

    Compariability of management reporting

    This characteristic of management reporting, as comparability, is no less important than the previous three, discussed above. It is clear that if the management reporting formats are changed too often, it will be very difficult to control and analyze the dynamics of indicators of such reports.

    Of course, it is not always the first time to develop the necessary form of a management report. To finally verify the completeness of the form, as a rule, you need to make a management report several times so that it is rolled out on the numbers.

    It is possible to adjust the formats of management reporting, but in the future it is desirable not to make changes to the form of management reports without necessity. Such a need can be due to a change in the company's strategy, which may require planning and control of new indicators that were not previously in management reporting.

    Yes, in this case, management reports may be changed, but still a company usually does not often change its strategy, therefore, management reporting forms should not often change.

    The number and composition of management reporting may change for another reason. If the company has a budget management system, and the planning model for certain reasons was detailed, which led to the emergence of new budgets and new indicators, then, it will be necessary to increase the number and composition of actual management reporting so that the factory plan can be obtained Reports for subsequent analysis.

    Such actions, of course, can lead to a change in the already existing formats of actual management reporting.

    Classification of management reporting indicators by parameter "Time"

    All indicators of management accounts by the "Time" parameter can be divided into three groups:
  • interval (revolving);
  • instant (Saldovaya);
  • mixed.

    Interval or revolving indicators of management reporting provide information for a certain period of time (day, week, month, quarter, year, etc.). Such indicators can be attributed, for example, sales, revenue from sales, profit, financial flow, etc.

    Instant or salade management reporting indicators give information at a particular point in time. Such indicators may be, for example, cash balance, receivables / payables, inventory, etc.

    Mixed indicators are formed from interval and instantaneous. Examples of such indicators may be the turnover of assets (all or some elements: receivables, inventory, etc.), the profitability of assets, the profitability of equity capital, etc.

    It is necessary to pay attention to the fact that for analyzing management reporting it is better not to use instantaneous parameters in its pure form, because They can change very much in each period. It is better to rely on the interval or mixed (interval with the instantaneous) indicators.

    For example, if the company grows receivables or a commodity reserve, then on the basis of this information, it is impossible to make an unambiguous conclusion. If the period of receivability of receivables or inventory increases increases, then this is a clear negative trend, but the growth itself of receipt or TMZ is about what he says.

    Classification of managerial reporting on time characteristics of indicators

    All managerial reporting on temporary characteristics of indicators may be divided into three main groups:
  • actual management reporting;
  • planned management reporting;
  • plan-fact managerial reporting.

    From the name of these report groups, it is obvious which information contains. But still you need to make a few comments.

    When forming the actual and planned management reporting, the same management accounting policy of the company should be used. Otherwise, this makes it difficult to analyze the factory management reporting.

    After all, some plan factual deviations may occur only because of the differences in accounting policies that were used when planning and registered.

    When forming a factory management reporting on financial responsibility centers (CFIs), it is necessary to remember that in this case it is necessary to use the principles of flexible budgeting.

    Thus, when forming the factory budgets, the TsFO must first calculate the flexible plan, and then calculate the factory deviations. If this is not done, then the assessment of the results of the work of the DSFO in the reporting period will be incorrect.

    Management Reporting Classifier (according to report types)

    Before starting to develop management reporting formats, you must first form a report classifier, that is, a complete list of all necessary reports with a brief description of their content.

    Of course, managerial reports can be classified differently. In fact, it is not so important which particular classification will be used in each specific company. The main thing is that it is carried out and is clearly fixed in the relevant regulatory documents.

    As a rule, the classification of management reporting is contained in the Regulations on Management Accounting. Naturally, the classification of management reporting should be convenient for use in practice.

    An example of a possible classification of managerial reports is presented on figure 1.. Immediately it should be noted that the names of the report groups are not somehow generally accepted. Each company, in general, can use its classification of reports.

    Fig.1. Classification of management reporting

    Although certain standards have already developed in terms of financial statements. That is, in each company, regardless of its activities, organizational structure, business processes, etc. Three financial reports should be drawn up: a report on income and expenses, a report on cash flow and balance (see Fig. one).

    This is necessary in order to control the financial and economic condition of the company. As a rule, the main users of financial reports are the owners and general director of the company. It should be noted that the general director's participation in the development of management reporting formats, at least financial reports, is a prerequisite for the success of a management accounting project.

    This does not mean that the Director-General must develop formats himself, but it should consider draft reporting forms offered by the Working Group of the Management Accounting Project and, of course, should understand these reports.

    In fact, one of the reasons for the inadequacy of the Director-General in such projects may be His habit of controlling not by the system, but "in the eyes". The financial director of one company at the very beginning of the consulting project for the formulation of management accounting complained by our team of consultants on the Director General.

    He said that if you declare to the Director-General that he had to understand three financial reports, then, most likely, nothing will come out of this venture. The financial director explained that several years have made such attempts for several years, so to speak, to teach the Director-General to the use of management reporting in managing the company, but for him, even one report is very much.

    We really needed a lot of time to convince the Director General in the fact that it is simply impossible to achieve a manageability of financial and economic condition, especially in rapidly growing companies. Therefore, we conducted individual classes first to study financial reports, and then operating.

    By the way, the financial reports are so called because they contain only value indicators. Financial reports, of course, may contain relative indicators (for example, profitability of sales or profitability of assets), but these indicators are derived from the cost.

    That is, in financial reports there are no indicators that are measured, for example, in pieces, kilograms, kilometers, etc. All financial reporting articles are measured in money. But in operating reports, in addition to cost indicators, natural can be.

    Objects of management accounting

    Operational reports can actually consist of several groups (see Fig. one). In order to easier to figure out the example of the classification of management reports in question, you need to combine the management reporting classifier with the classifier of accounting objects (see. Fig. 2.).

    Fig.2. Communication of the classifier of control reports and managerial accounting objects

    Financial reports are compiled by such an object as the company as a whole or by group of companies, if it comes to the holding. By the way, the compilation of the consolidated financial statements on the holding may be quite a difficult task.

    If the holding consists of companies that are not connected with each other at the operating level, the task of the consolidation of financial statements is solved quite simply. If economic operations are carried out between the holding companies, then in this case it is not so obvious, because it will be necessary to take into account mutual operations so that at the level of the holding in the consolidated statement, do not distort data on income and expenses, assets and liabilities at the level of the holding in consolidated reporting.

    So financial reports provide information on the financial and economic condition of the company as a whole. But in order to understand why it was precisely such values \u200b\u200bof financial reporting indicators that need to be immersed on a lower (operating) level. Lower level management reports can be of different types depending on accounting objects.

    Among the objects of the lower level accounting can be allocated business processes, projects and divisions. Moreover, projects can be divided into current and investment. The fact is that current activities, at the expense of which the company earns profits can be organized in different ways.

    Some companies (process) earn that they organized a chain of regular business processes from supplying to sales, while other (design) - on the fact that we built a system to perform limited across the time (projects). Process companies can be assigned, for example, organizations engaged in mass production, or trading companies engaged in regular wholesalers or retail sales.

    Typical representatives of project companies are the construction organizations, because They earn profits by building and implementing certain objects. The construction of such objects in this case is current projects. As a rule, all these objects are in their own way unique, therefore this type of activity cannot be considered as more or less typical as mass flow production.

    In fact, recently, the trend of erasing the face between the process and the design organization of current activities is becoming increasingly expanding. For example, some manufacturing companies can work using a closer principle that may be regarded as project activities. And among construction companies, there are those that regularly build more or less typical objects, for example, towers for cellular operators.

    There may be several hundreds of such more or less typical objects of the company during the year. Nevertheless, the current activities of any company more applies to a more or to process, or to the project. This is based on the development of a classifier of managerial accounting and management accounting classifiers.

    Thus, the process company has such an object, as current projects, is simply not. But in addition to current projects, regardless of the organization of current activities, in any company there may be development projects. The purpose of these projects is fundamentally different from the purposes of current projects.

    Current projects allow the company to earn profits through the available potential, and development projects are intended to substantially changing the company's capacity, which in the future, naturally, should have a positive impact at the final financial and economic condition of the company.

    So, for monitoring the current activities of process companies, functional (process) management reports are used, which contain information on financial and economic indicators characterizing the effectiveness of business processes. The number and composition of functional reports is determined individually in each company.

    To monitor the current activities of project companies, management reports are used on current projects that contain information on financial and economic indicators characterizing the effectiveness of business projects.

    Investment reports are used to control the effectiveness of investment activities that contain information on financial and economic indicators characterizing the effectiveness of the implementation of development projects.

    Finally, to control the work of financial responsibility centers (CFIs), reports on CFIs are used, which contain information on financial and economic indicators characterizing the efficiency of those units that are assigned to the status of the CFO.

    Note: In more detail the topic of this article is considered at the workshop "Stopping and automation of management accounting" which holds the author of this article -