Accounting Participation In Business Decision Making

As early as the 50s of last century, management accounting in western countries had developed. However, in the late 70s of last century, management accounting began to spread as a discipline.

Due to various factors, its development is hindered and restricted.

In particular, the role of participating in the business decision making is seriously neglected.

In the light of the actual situation in China, this paper puts forward its own views and countermeasures.

Management accounting is developed and developed in the West. It is bound to be influenced by the internal and external environment of our enterprises and the defects of management accounting itself in the process of promotion and application of Chinese enterprises.

The external environment of enterprises mainly refers to the economic system environment, legal environment and cultural environment.

Management accounting is closely related to the external environment of enterprises. External environment directly affects whether management accounting can be universally applied.

1., the impact of the economic system environment.

Management accounting consists of two parts, namely, decision accounting and executive accounting, and takes decision accounting as the main body.

However, for a long time, our country has been carrying out the planned economy system. Under this economic system, the supply, production, marketing and people, money and goods are included in the corresponding plans, and the enterprises or non-profit organizations can not make investment decisions independently.

Under such circumstances, management accounting has no meaning to provide decision information to business decision-makers.

2. influence of legal environment.

China's legal system is not yet perfect.

If the tax law stipulates differential tax rates for enterprises in different regions and different forms of organization, different value-added tax treatments are provided for taxpayers of large or small scale.

All these have caused the unequal position of enterprises.

These legal systems are not perfect and imperfect, which makes management accounting weaken greatly in usefulness when providing business decision information to enterprises.

3. influence of traditional practices and habits.

This kind of influence is embodied in the following aspects: some accountants and factory managers think that accounting is accounting and reimbursement, as for management and business decisions, that is the matter of enterprise leaders; because of the influence of long feudal autocracy in old China, although management accounting has obtained the best plan for leaders through various calculation and analysis, it can not be asserted in front of some "officers and voliors"; management accounting requires rewards and punishments when evaluating performance, but many operators are deeply influenced by the idea of "big trouble and small incident", and it is difficult to achieve "penalty".

This makes management accounting work in a business with half the effort, thus affecting its popularization and application.

Two, the internal environment of enterprises mainly refers to the business operators, accountants and accounting computerization equipment.

Management accounting is mainly for the internal management decisions of enterprises. The internal environment of enterprises plays a decisive role in the widespread application of management accounting.

The influence of the 1. business decision-makers.

The importance of management accounting by enterprises' decision making authorities directly affects whether management accounting can be widely applied in enterprises.

Modern market economy requires entrepreneurs not only to understand business, but also to understand management, including accounting and financial management.

At present, in many enterprises, there is no establishment of management accounting organization, nor training of corresponding management accounting personnel. Accountants themselves have no chance and enthusiasm to apply management accounting.

2. influence of accountants.

The influence of Accountants on management accounting is mainly reflected in the quality of accountants.

At present, the overall quality of Accountants in China is relatively low. Under their own conditions, it is difficult for them to practice management accounting.

Although some accountants have learned some management accounting knowledge, most of them are in the stage of paper talk, and have not carried out systematic practical operation.

All these factors restrict the widespread application of management accounting in enterprises.

3. impact of computerized accounting.

At present, the application level of computers in China's enterprises is not high, and the utilization rate is low.

In the accounting computerization enterprise, its application only stays at the post account level, and does not have the ability to control in advance and predict in advance.

The existence of these factors also makes management accounting unable to adapt to the development of modern market, thus weakening the role of management accounting.

(three) the impact of management accounting's own defects. With the rapid development of modern science and technology and the rapid improvement of productivity and the integration of the world economy, the competition faced by enterprises is not only from China, but also from abroad.

Facing the ever-changing external environment and strong competitors, management accounting can not meet the requirements of modern enterprises.

It is shown as follows: 1..

General management accounting only pays attention to financial accounting information and strengthens internal cost control.

At the present stage, the market competition is very intense. It requires that management accountants not only attach importance to information inside enterprises, but also pay attention to market information.

It is difficult to make correct evaluation and decision by relying solely on the information inside the enterprise.

The 2. point of management accounting is inadequate.

Modern enterprise management is business management rather than productive management. Enterprise management should focus on sales.

While management accounting regards sales as a constant, determining sales volume as a prerequisite for cost prediction and control, profit planning and control, and capital planning and control.

This will hinder the application of management accounting.

3., information lag.

Because many of the information of management accounting comes from the reports of financial accounting and cost accounting, any accounting report is just in the middle of the next issue.

Because of the lag of these information, it makes it useless for managers to make decisions, which seriously weakens the role of management accounting.

4. evaluation of products with shorter market life.

A trend of modern products is upgrading.

The life cycle of many products is only a few years, some of them are only one year or shorter.

Many enterprises compete in the industry not only by low cost products, but also by product updates.

Traditional performance evaluation is always centered on cost.

Two, accountants are better able to take part in the decision making of enterprises.

To participate in decision-making, policymakers should be convinced that the data you provide are true and credible.

(two) improve the quality of accountants and cultivate the management accounting consciousness of business leaders.

Only by establishing a contingent of high-quality management accountants can we promote the use of management accounting.

As far as basic education is concerned, it is necessary to conduct extensive, in-depth and lasting management accounting basic education in all kinds of institutions, the vast number of managers and accountants, and cultivate their ability to apply management accounting.

Compared with accountants, the cultivation of management accounting knowledge and quality of the leading leaders of enterprises may be more important.

If business leaders do not have certain knowledge of management accounting, they will not consider the role of Accountants in forecasting, decision making, planning and control, even if the level of Accountants is too high, it will be difficult to play a role.

(three) actively promote the modern enterprise system.

There is a close relationship between the system of enterprises and the role of accounting. What kind of accounting system does the enterprise system need?

The establishment of modern enterprise system will inevitably require the use of management accounting to improve the economic efficiency of enterprises.

We should further improve our legal system, create an open and free market environment for enterprises, so that enterprises can survive in this environment.

Therefore, in order to urge enterprises to apply management accounting techniques and methods as far as possible in their management, we must constantly deepen the reform of the economic and management system, further clarify the property rights, improve the reward and punishment system of the enterprise administration, and constantly improve the market mechanism, so that every enterprise can really consider relying on improving internal management to ensure that they are invincible in the competitive competition.

Three, the meaning of management accounting. The essence of management accounting is the direct combination of accounting and management. It is an accounting management.

1., enterprise management makes decisions to determine the business objectives of enterprises. Management accounting should take part in decision-making and make forecasts.

In order to achieve the goal of operation, the 2. business management department will decompose the target into every workshop department. The management accounting must establish the responsibility accounting system and formulate the budgets of all units.

In the actual implementation process, management accounting should carry out internal control in the 3. business management aspect.

The 4. business management department inspected the actual implementation, and management accounting should conduct performance appraisal according to the responsibility accounting.

The 5. business management team summarized the past and put forward a new business plan. Management accounting should analyze the past benefits and forecast the benefits of the new business plan, so as to provide the basis for the next decision.

The purpose of management accounting is to emphasize the optimization of economic efficiency. (two)

In western countries, all forecasts, decisions and controls of management accounting are for maximum profit.

The maximization of profit is the optimization of economic benefits.

Under the condition of market economy in China, the goal of enterprise management is to maximize shareholder rights. Management accounting is especially important in decision-making.

(three) the means to achieve the purpose of management accounting is to mobilize all positive factors.

Although management accounting pays much attention to mathematical models and adopts many quantitative analysis methods, it must not be regarded as a simple technical method, and more importantly, it attaches great importance to doing good work, improving relations among people, guiding and inspiring people to fully play their initiative and enthusiasm in production and operation activities.

Objective management, responsibility accounting, performance appraisal and so on are all set up for this purpose.

Only by mobilizing the enthusiasm of employees can we ensure the best economic efficiency of enterprises.

With the reform of the economic system and the continuous improvement of business autonomy, management accounting, which aims at improving economic efficiency, will play an increasingly important role in the management of enterprises.

Accounting participation in the operation of enterprises will also become inevitable, which can make great contributions to China's social and economic development.

Author: Shanxi Datong gear Refco Group Ltd accountant