MODERN TOOLS FOR MANAGEMENT ACCOUNTING AND THEIR ROLE IN ENSURING THE TOTAL VALUE OF THE ENTERPRISE

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Dec 28, 2020

  Maksym Chut

Abstract

The purpose of the paper is to determine the role of modern effective tools for management accounting in the context of increasing the total value of the enterprise. The article deals with the basic tools of management accounting and details the essence of their transformation in modern conditions. Current market conditions require modification of individual management accounting tools and methods, which are described in detail and substantiated in the article. In Ukraine, the value of management accounting remains undervalued, because, unlike the major international accounting systems, the use of management accounts in correspondence with financial accounts is in no way intended. Management accounting as such is at the discretion of the enterprise. Therefore, this function - meeting the specific management information needs - is often entrusted with analytical accounting data which, by its very nature, cannot fully accomplish such tasks. The author specifies some atypical modern tools not only the management accounting process, but also its support. Business value estimation is presented as a kind of management accounting tool that allows, at the same time, to create reputation capital, and to become an element of it. As a result, the system of the newest management accounting tools in the system of value-based management was improved by determining the essence of transformation of its components, which allowed to establish their role in identifying and counteracting factors of negative influence in terms of growth of enterprise value. The research substantiates the role of each single up-to-date management accounting tool (application of modern e-document flow in management accounting, cost-oriented controlling, actuarial calculations, international accounts, electronic forms of analysis, forecasting and mathematical modelling, reporting forms and their dissemination by modern means of communication) in identifying and eliminating problematic factors to the implementation of value-based management.

How to Cite

Chut, M. (2020). MODERN TOOLS FOR MANAGEMENT ACCOUNTING AND THEIR ROLE IN ENSURING THE TOTAL VALUE OF THE ENTERPRISE. Three Seas Economic Journal, 1(4), 153-158. https://doi.org/10.30525/2661-5150/2020-4-22
Article views: 363 | PDF Downloads: 370

##plugins.themes.bootstrap3.article.details##

Keywords

value-based, management, accounting, capital, reputation, business image

References

Trunina, I. M., & Onyshhenko, O. V. (2018), “Methodological approaches to managing the costs of industrial enterprises”, Modern Economics, vol. 7, pp. 182–191

Kundria-Vysotska O., & Wagner I. (2011), “Conceptual Approaches to the Recognition and Organization of Strategic Accounting”, Ekonomika i banki, no. 1, pp. 3–8.

Muhina, E. (2014), “Theoretical aspects of strategic management accounting as an element of effective organization management”, Voprosy ekonomiki i prava, vol. 8, pp. 104–109.

Pylypenko, A. (2007), Orhanizatsiia oblikovo-analitychnoho zabezpechennia stratehichnoho rozvytku pidpryiemstva [Organization of Regional and Analitical Care of Strategic Development of Business], KhNEU, Kharkiv.

Ward, K. (2002), Strategicheskii upravlencheskii uchet [Strategic Management Accounts]. Olimp-Business CJSC, Moscow, Russia.

Ushanov, I. (2011), “Strategic management accounting of client profitability based on CAP analysis”, Proceedings of the Moscow Institute of Physics and Technology (Trudy MFTU). Computer Science, Management, Economics, vol. 3, no. 2, pp. 134–137.

Shevchuk, V. (2012), “Strategic management region yak information system competitive competition strategy of strategic enterprise”, Visnyk Natsionalnoho universytetu "Lvivska politekhnika", no. 722 : Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia i problemy rozvytku, pp. 281–285.

Chandler, A. D. (1990). Integration and Diversification as Business Strategies--An Historical Analysis. Business and Economic History, vol. 19, pp. 65–73.

Ansoff, H. I. (1965). Corporate strategy: An analytic approach to business policy for growth and expansion. Penguin Books.

Kasych A. O., & Kharkova Zh. V. (2016), “Managing the Competitive Advantage of the Enterprise”, Economic Analysis: Collection of Scientific Papers: Publishing and Printing Center of Ternopil National Economic University “Ekonomichna Dumka”, Ternopil, vol. 25, no. 2, pp. 79–85.

Kasych, A. O. (2014), “The Introduction of the Concept of Strategic Management into the Practice of Industrial Enterprises”, Business Inform, no. 11, pp. 290–294.

Veretnov, V. (2012), “Outsourcing. Strategic Management Accounts in the Field of Software Outsourcing”, available at: http://www.klubok.net/article1198.html//07/20/2007//20.25.10

Onyshchenko, O. (2016), “Modern engineering instruments for accounting theory and practice”, Visnyk Kremenchutskoho natsionalnoho universytetu imeni Mykhaila Ostrohradskoho, vol. 3 (2), pp. 78–86.

Ramljak, B., & Rogošić, A. (2012), Strategic management accounting practices in Croatia. Journal of international management studies, vol. 7(2), pp. 93–100.

Barczi, J., Szentirmai, M. G., & Zeman, Z. (2011), “The information-connection between the strategic management-accounting and the company valuation”, available at: http://ssrn.com/abstract=1928034

Drury, C. (2005), Upravlencheskij i proizvodstvennyj uchet [Management Accounts and Production Accounting], UNITY-DANA, Moscow.

Bromwich, M. (1990), “The case for strategic management accounting: the role of accounting information for strategy in competitive markets”, Accounting, Organization and Society, vol. 15, pp. 27–46.